USD/CAD: TD Bank recommends selling rallies that hit 1.33

TD is gambling on the USD/CAD range:

"The commodity currencies are stuck between two stabilising factors: high oil prices and pending interest rate rises by the Fed. The CAD is falling behind the forex compared to the recent rise in oil prices and there may be room to catch up. But we are cautious regarding this scenario because we have speeches by the governors of the Fed that could change market sentiment regarding the Fed. Also, on the economic calendar we have the minutes of the Fed and US retail sales. The markets will focus on what prompted the three governors (Mester, Rosengren and George) to vote for a rate hike. Regarding retail sales, recent car sales figures should provide a breath of fresh air for August

All of this suggests that USD/CAD dips will likely be brief. Solid support is at 1.31. But we prefer to sell around 1.33." says TD Bank.