USD/CAD back above 1.2300, FOMC eyed

• All eyes turn to FOMC statement
• USD/CAD recovers the 1.23 mark ahead of the announcement

USD/CAD bounced from fresh 4-month lows struck earlier on the day as the greenback found buyers ahead of the FOMC statement.

USD/CAD bottomed out at 1.2249, lowest since Sep 20, and started to move higher, staging a modest recovery and erasing most of its intraday losses over the last hours. However, the upside remained limited by the 1.2320 area, leaving the pair in consolidation mode around 1.2300.

The Federal Reserve concludes its 2-day policy meeting at 19:00 GMT with no changes expected on monetary policy. Next rate hike is seen in March, although some participants do expect the Fed to take a more hawkish tone today.
 
USD/CAD levels to watch

At time of writing, USD/CAD is trading at 1.2310, still 0.18% below its opening price. 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 other hand,  supports are seen at 1.2249 (intraday low), and 1.2197/1.2200 (Sep 20 low/psychological level) and 1.2170 (Sep 18 low).