USD/CAD extends the decline

Fxstreet.com (Edinburgh) - After hitting fresh multi-month highs around 1.0550 on Monday, the USD rally is now giving ground, dragging the USD/CAD to the current region of 1.0470.

USD/CAD boosted by FOMC

The rally in the USD post-FOMC meeting sparked last week has propelled the pair to fresh year highs above 1.0550, levels last seen in early October 2011, allowing the pair to close the week with gains after two straight weekly closes in red. Ahead in the day, the focus will remain on the greenback, as Durable Goods Orders, Consumer Confidence and New Home Sales are due in the US economy.

USD/CAD key levels

As of writing, the pair is down 0.31% at 1.0467 facing the next support at 1.0421 (high May 29) ahead of 1.0400 (psychological level) and then 1.0364 (low Jun.24). On the upside, a surpass of 1.0556 (high Jun.24) would target 1.0573 (high Oct.5 2011) en route to the psychological level at 1.0600.