The Canadian dollar’s bull run against the US dollar took a break yesterday after the USD/CAD pair reached new marginal lows. The pair hit a low of 1.3053 in yesterday’s trade — the lowest level since July — but the US dollar recovered some ground to close the session near its opening price.

While there are no important market reports from Canada and the US scheduled for today, the positive outlook for the CAD may continue in the short-term given that the relatively steady monetary stance from the Bank of Canada contrasts with the dovish Fed. Both central banks have their monetary policy meetings next week.

Last week’s CTFC CoT report showed a significant rebuilding in the market’s bullish view on the US dollar, with the aggregate long position in the currency increasing over $2 billion in the week ending October 20. This is the highest bullish bet since June and poses a risk of an upcoming extreme in bullish positioning. Long positions in the Canadian dollar rose $583 million last week, representing an increasing trend.

From a technical standpoint, the upturn in the Canadian dollar started with a double top pattern in the USD/CAD pair combined with a bearish divergence in the RSI. While the move looks currently overstretched, the pair could retest the July lows around the lower 1.30xx levels ahead of next week’s BoC and Fed meetings. A shorter-term support level is the 1.3053 low of yesterday.

To the upside, sellers may join the market near the 1.3130 level, which represents the neckline of the double top pattern and an important mid-term resistance. As of 10:20 a.m. London time, the US dollar vs. Canadian dollar pair traded at 1.3061. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.