Canadian Dollar Futures (Fri. close $88.48 U.S.)

In my May 24th, 2006 Comment, I called for a short term correction to retest support at the uptrending 200-Day Moving Average. This retest occurred a week ago, and we are now stuck in a narrow trading range between the 100 and 200 Day Moving Averages.

While the intermediate term trend remains positive, I am not yet ready to call for short term recovery from here. Perhaps we need more work in the short term trading range between the two moving averages. Short term weakness persists.