Interest rate differentials continue to favor the United States, so therefore I think we continue to see buyers jump into this market. We gapped higher at the open during the week, and that of course is a bullish sign. I think it’s only a matter of time before we break out to the upside, but if we were to turn around and break down below the 1.29 handle, that could unwind this market a bit further. On a break higher, I would anticipate that there is a lot of noise to overcome, so it’s not going to be an easy trade. At that point, I believe that the market goes to the 1.33 level above.
The volatility continues, so I would keep the position size is in this market a bit small, but longer-term I do think that we will favor the upside overall, and I believe that the added specter of the Canadian housing bubble will enter the market sometime later this summer.