The Canadian dollar continues to maintan its dominance over the U.S. dollar. We have consistantly seen the .99 level tested time and time again with out any follow through.  I have included a link to a weekly chart to offer a bigger picture perspective on the USD/CAD trend.  Using a common exponential moving average pairing of 8 and 21, we can see that the trend in force remains to the downside. This makes the support level I have highlighted at .98/.99 zone very important for the U.S collar bulls.  A follow through to the down side could see the pair trading all the down to at the .90/.93 level.  We haven’t seen those levels since oil was at $100.00/barrel.  With oil continuing to test…and reject the $94.00 resistance, we have seen the USD/CAD conversely bounce off of the .98/.99 support.  As Richard observed in his last blog…Oil is due for a correction, however a break beyond $94.00 and a push towards $100.00 is likely going to further weaken the U.S. Dollar towards the .90/.93 lows of 2007.

USD/CAD WEEKLY CHART