USD/CAD: bearish post US session sell-off on Trump and US 10-year auction

Currently, USD/CAD is trading at 1.3177, down -0.38% on the day, having posted a daily high at 1.3295 and low at 1.3119.

USD/CAD has been a volatile drop from aforementioned highs due to US yields dropping on the aggressive bid in the 10-year auction, an uncommon event that otherwise has little market effect, but on this occasion it was an outside move and coupled with Trump's lack of conviction or clarity during the presser and much of the same bloating and Trump bullishness rather than anything factual or concrete, he failed to deliver on fiscal policy matters that had otherwise been supporting the dollar on the markets pure speculation.

"The CAD is not correlating particularly well with anything at the moment; by our measure, most key CAD correlations are low (and have been weakening), suggesting the CAD's relative strength in recent days is flow-driven or technical in nature. Or it may be that the market is simply disengaged still after the holidays and the CAD will start to respect wide, USD-supportive interest rate spreads and the recent drop back in crude oil prices more obviously once trading volumes pick up, suggested analysts at Scotiabank earlier.

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USD/CAD levels, bearish below 1.3180

With spot trading at 1.3177, we can see next resistance ahead at 1.3190 (Yesterday's Low), 1.3192 (Daily Classic S1), 1.3225 (Hourly 20 EMA), 1.3225 (Daily Classic PP) and 1.3227 (YTD Low). Support below can be found at 1.3156 (Daily Classic S2), 1.3133 (Monthly Low), 1.3123 (Daily Classic S3), 1.3119 (Daily Low) and 1.3117 (Weekly Classic S1). "Resistance remains 1.3275/80 and we look for the USD to improve above here. Below 1.3180 and technical risks for the USD deteriorate further," offered the analysts at Scotiabank.