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The Canadian dollar was already on the back foot due a series of blows (see 3 reasons for the C$ crash). And then, came the FOMC decision. Janet Yellen and her colleagues lowered unemployment projections and announced a third taper. This gave the US dollar a boost across the board and the already sensitive loonie was hit badly.

Here is the long term chart that reflects the surge of USD/CAD (fall of CAD):

USDCAD 4 year high March 19 2014 monthly Dollar CAD forex chart for currency trading

1.1224 was the January 2014 high. In the immediate aftermath of the statement, we have seen the initial break, but the move was limited. As Yellen began talking, a second wave of US buying began and the breakout was confirmed.

The last time that Dollar/CAD saw these levels was in June 2009: 4 years and 9 months.

1.1270 is the new high at the time of writing. The next major level is only at 1.1473. For more, see the USDCAD forecast.

Analysis:  5 reasons for USD rally on the Fed decision