FXStreet (Córdoba) – USD/CAD fell sharply and scored a fresh 1-week low as the dollar weakened broadly across the board following Fed decision to keep interest rates unchanged and the subsequent Yellen press conference.
USD/CAD lost more than 120 pips in a matter of minutes and hit a low of 1.2220 despite 15 of 17 FOMC members expect rates to be raised before the year end. Investors were expecting a hawkish hint from the Fed Chair but instead got the same rhetoric that in previous meetings.
USD/CAD is currently trading at 1.2230, recording a 0.48% loss on the day, having pulled back from a peak of 1.2345 reached as the knee-jerk reaction to the statement.
USD/CAD technical levels
As for technical levels, immediate supports are seen at 1.2220 (Jun 17 low), 1.2201/00 (Jun 10 low/psychological level) and then 1.2172 (May 22 low ). On the other hand, next resistances are seen at 1.2345 (Jun 17 high), 1.2360 (Jun 15 high) and 1.2400 (psychological level).
(Market News Provided by FXstreet)