USD/CAD slightly higher after Fed’s decision, still negative for the day

The US dollar removed some of its losses across the board after the decisions, the statement and the updated projections of the Federal Reserve. The US central bank rose interest rates by 25bp as expected. USD/CAD continued to move in a trading range and moved to the upper limit. 

Fed raises rates by 25 bps; second hike of 2017

During the last hours, the pair has been hovering around 1.3200, facing support at 1.3180 and resistance at 1.3220/30. Price remained inside the range after the decision. The downside momentum appears to be easing ahead of Janet Yellen’s press conference. Slowly the pair is moving away from 3-month lows that reached earlier today at 1.3163. 

The Fed rose rates as expected. One member of the FOMC Neel Kashkari, voted against the decision. The surprise was that the central bank presented a detailed document regarding how it plans to unwind its balance sheet. In a few minutes, Yellen will read an initial statement and then she will answer questions. 

FED Rate Decision Live Coverage

Levels to watch 

To the upside, resistance levels area located at 1.3220/30, 1.3245 (daily high) and 1.3290. On the downside, support might lie at 1.3165/70 (daily low), 1.3125/30 (Feb 27 high) and 1.3100 (psychological).