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Forget about parity with the U.S. dollar. Now, one group of strategists is predicting the loonie will keep on flying and rise above its record high in 2007, when it touched $1.10 against the U.S. dollar.

According to Bloomberg News, technical analysts at Société Générale SA believe the U.S. dollar has resumed it medium-term downtrend sooner than expected. The level to watch is 97.10 cents (that's in Canadian-dollar terms): A break below that level would open the door to a new historic low.

The reason seems to have to do with where buy orders are concentrated - right now between $1 and 98.2 cents. Presumably, if the U.S. dollar falls below that level, there would be little support for it among buyers.

Putting that forecast into U.S.-dollar terms, if the loonie rises to $1.03, it will likely continue rising above $1.10.

Of course, as the Bloomberg article pointed out, the last time the Canadian dollar spiked to $1.10 against the greenback was in 2007, when the price of crude oil was on its way above $100 (U.S.) a barrel. And after the dollar peak, it very quickly turned around, losing nearly 25 per cent of its value against the U.S. dollar by the end of 2008.

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