Canadian Dollar Futures (82.15)

On May 19th, 2005 (79.75) I said I was looking for a short term rally. That rally now appears to be over. On a short term basis we are in an unusual situation that has seen both the Canadian and U.S. currency rising at the same time. Something has to give here. For starters, on the short term I'd like to see the Canadian dollar drop off to 80 cents or below that level. Beyond the near term, I expect that we will be looking at a weaker Canadian dollar, but so far my math models have only moved to neutral - still a big adjustment from the stunning uptrend that was still in place when I last commented on the loonie.