Rabobank economists expect the USD / CAD to eventually break out of its recent model with 1.4170, the obstacle necessary to cross the target of 1.44 before the end of June.
“The USD / CAD pair is traded according to a somewhat familiar triangle model with an exchange of range in an ever narrower range. This type of triangle often leads to a sudden rupture once the barriers have been crossed and since the training takes place after a major rally, the bias would normally be for an upward break. “
“A move above 1.4170 opens a move towards our target of 1.44 before the end of June. On the downside, we would need a confirmed close below 1.3850 to break the formation, but we think this is unlikely at this point. “