TD Research likes selling USD/CAD on rallies over the coming weeks.
"We look for the CAD to retain a supportive tailwind after the Bank of Canada outlined steps to unwind its extraordinary stimulus programs in the weeks ahead," TD notes.
"While we suspect overall USD direction is likely to dominate for a while longer, we think USDCAD would be one of the better places to sell dollars if we do get a broader pullback in its latest rebound. Ahead of that, we look for CAD to outperform on certain key crosses. We continue to target a move to 1.47 in EURCAD," TD adds.