USDCAD extends rally, on track for 1.39/1.40 target - Scotiabank

Analysts at Scotiabank points out that USDCAD is making solid progress towards the bull targets and they noted that the bullish break from the Mar/Apr consolidation (bull flag) pointed to a repeat of the Feb/Mar rally (essentially targeting 1.39). 

Key Quotes

“Secondly, we viewed the push above resistance just under 1.35 as a bull break from an inverse H&S continuation pattern (targets 1.40).  A strong weekly close Friday,  a new cycle high yesterday and a strengthening alignment in the short, medium and longer-term trend oscillators (DMI) all suggest strong (and strengthening) underlying momentum propelling the USD higher and, we expect, limiting scope for counter-trend corrections. We think minor dips to the mid/upper 1.36s are likely to remain wellsupported from here.”