USD/CAD: Break above 1.31 to open up additional gains towards 1.3334 – Credit Suisse

USD/CAD remains within its broad 1.24-1.31 range. That said, potential breakout risks remain pointed to the upside, with a sustained break above 1.31 likely triggering a further advance to 1.3334, analysts at Credit Suisse report. 

1.23-1.31 range to be sustained for now

“We stick with our view for further sideways motion within the highlighted broader 1.24-1.31 range, though with a bias for a short-term swing back lower toward the middle of the channel.”

“With our positive DXY view in mind, we see the risk of an upside breakout as more likely than a downside breakout, with a sustained break above 1.3076/1.3100 signaling a more constructive medium-term outlook and opening the door to the 50% retracement of the 2020/21 fall at 1.3334.”