It has been a modest open to the trading week, with the U.S. indices opening in the red. At press time, the DJIA is off over 125 points and the S&P 500 is down slightly. The USD is hanging in there, trading in a tight range against most of the majors. All in all, it is a typical Monday session.

Today’s economic calendar is relatively vacant. U.S. Treasury auctions are the highlight today, with short and long-term debt instruments hitting the market. It will be interesting to see how much interest there is in bonds. With the March FED meeting just over a week away, investors may go long the debt market in anticipation of the coming rate hikes. Stay tuned.

USD/CAD Techicals

It has been an interesting few sessions for the Loonie. Since the rejection of 1.3000 as topside resistance, the USD/CAD appears to have entered a corrective phase.

Tomorrow will bring us more action in the USD/CAD as the crude oil inventory cycle kicks off. For today, I expect rotation to be the rule.

Here are the downside support levels to watch for the remainder of the session:

• Support(1): Bollinger MT, 1.2734
• Support(2): Daily SMA, 1.2627

Overview: It is a typical Monday on the markets. With a lack of economic events to drive participation, volatility is limited. Patience will be key as we move into the heart of the trading week.