USD/CAD: SEB believes pair should soon resume its climb above the 1.2835 level

SEB Group's technical strategy team noted a potential upside for the USD/CAD to 1.2835, if the pair is able to stay above 1.2675.

"Currently stationed in what appears to be a contraction range (a triangle), we await the return of buyers above 1.2675, while if the USD/CAD breaks below this level, a prolonged correction will be likely.

"A new attempt to break key resistance at 1.2835 should then follow. Once this resistance is reached, the pair should target our long-term range objective at 1.3066-1.3426".