The US dollar is rallying, breaking above the 1.40 level. The market continues to look as if it is trying to break to the upside, perhaps to the 1.41 level, an area that’s been resistance in the past. This, I believe, is a direct indictment of the Canadian economy. This is also perhaps being helped a little bit by the fact that oil is cooling off.
But in the longer term, this looks like it could have some room to run. If we can clear the 1.41 level, we could be looking at 1.45. At this juncture, short-term pullbacks continue to be buying opportunities.
