FXStreet (Edinburgh) – The greenback is posting decent gains vs. its Canadian neighbor on Wednesday, pushing USD/CAD above the 1.2300 mark.
USD/CAD all the attention to the FOMC, Yellen
Looking at the daily chart, spot maintains the narrow range so far, with decent support in the 1.2200 neighbourhood and gains capped around the 1.2560/80 band. Today’s FOMC meeting and the subsequent press conference by J.Yellen might provide a strong enough catalyst to break that range either way.
A priori, the upper bound of the range could be tested today following initial estimates that point to a hawkish tone by the Committee’s statement and Yellen’s speech, while market participants will try to gauge the timing of a potential rate hike by the Fed.
USD/CAD key levels
At the moment the pair is up 0.15% at 1.2314 and a break above 1.2362 (high Jun.15) would aim for 1.2442 (high Jun.9) and then 1.2473 (high Jun.8). On the downside, the immediate support lines up at 1.2296 (low Jun.15) ahead of 1.2283 (low Jun.17) and finally 1.2279 (low Jun.12).
(Market News Provided by FXstreet)