USD/CAD: headed for a break of supporting range 1.3600 and 1.3550?

Currently, USD/CAD is trading at 1.3580, down -0.38% on the day, having posted a daily high at 1.3661 and low at 1.3573.

• US Treasuries: Yields virtually unchanged on Tuesday

USD/CAD is has taken a turn to the downside despite WTI consolidating the recent daily bid. This is more of a yields story across the G7's today as the dollar comes off and the US 10-years drop below 2.33% median while the lows were 2.3046% today. The move has been in a CAD-supportive manner, with the 2Y U.S.-Canada yield spread softening to 60bpts from last week’s 10 year high above 65bpts, explained analysts earlier at Scotiabank also adding, "The outlook for relative central bank policy favors medium term CAD weakness, however, we acknowledge CAD’s near-term vulnerability to knee-jerk strength on the basis of extended, record short positioning revealed in last week’s CFTC data."

US Dollar slips below 98, touches lowest level since early November

USD/CAD levels

USD/CAD has been unable to sustain the bid above the  10 daily sam at a1.3671 and more recently broke below the 20 daily sam at 1.3660. The CAD subsequently gathered momentum today and was testing fresh May lows around 1.3600 with a new low scored on the day at 1.3573. "Bullish momentum signals have softened to neutral, DMI’s have converged, and near-term focus has shifted to the 21 day MA (1.3623)," explained analysts at Scotiabank, adding that the near-term support appears limited between 1.3600 and 1.3550. Look to the near-term resistance between 1.3680 and 1.3700."