The sharp but erratic appreciation in the Canadian dollar should not be viewed as a retracement, one analyst has claimed.In forex parlance, a retracement describes a rebound movement that corrects an earlier spike deemed to be excessive. In the case of the loonie, Forex Blog's Adam Kritzer claimed, there is a viewpoint that that the upward trend is simply correcting the nosedive witnessed during the financial crisis.However, he continued: "This argument, however, ignores the notion that the Loonie was probably overvalued before it fell."Mr Kritzer explained that oil and equities, to which the loonie is strongly tied, were sky high in the run-up to the financial crisis, but have since careened to record lows.After hitting a peak of $147 a barrel on July 11th, crude had fallen to $34 a barrel by the end of 2008.As such, any retracement of the Canadian dollar to pre-crisis levels needs to be tethered to movements in equities and crude markets, Mr Kritzer advised.