USD/CAD reaches session highs but lacks follow-through

• US dollar strengthens slightly after Fed decision
• USD/CAD fails to sustain altitude

USD/CAD climbed to session highs as the dollar strengthened mildly following Fed’s decision to leave rates unchanged at its January meeting.

The Federal Reserve decided to leave monetary policy unchanged at Yellen’s last meeting as Chair, and signalled at further gradual increases in rates if economic conditions warrant.

USD/CAD climbed to a peak of 1.2332, although the move lacked follow-through. At time of writing, the pair is trading at 1.2300, virtually at the same level it was before the FOMC statement. 

USD/CAD technical levels

In terms of technical levels, next resistances line up at 1.2347 (intraday high), 1.2380 (10-day SMA), 1.2419/26 (20-day SMA/Jan 24 high) and 1.2490 (Jan 23 high). On the flip side,  supports are seen at 1.2249 (intraday low), 1.2197/1.2200 (Sep 20 low/psychological level) and 1.2170 (Sep 18 low).