FXStreet (Edinburgh) - The Canadian dollar remains on the defensive vs. the greenback, with USD/CAD meandering in the low-1.3800s s far. USD/CAD upside intact on Fed Spot is coming down from earlier fresh cycle highs around 1.3850 after the Fed has finally raised rates by 25 bp after almost a decade of exceptionally low interest rates; the Committee now expects ‘gradual’ increases in the upcoming periods. The decision to hike rates was unanimous: 10-0. Regarding the FOMC projections, the Committee now sees the GDP expanding 2.1% in 2015, 2.4% in 2016 and 2.2% in 2017, while the unemployment should continue to tick lower. FOMC officials now see inflation at 0.4% during the current year, 1.6% in 2016 and 1.9% in 2017. USD/CAD levels to consider As of writing, the pair is gaining 0.33% at 1.3788 and a break above 1.4000 (monthly high May 2004) would expose 1.4195 (monthly high Jul.2003). On the other hand, the next support lines up at 1.3420 (2-month uptrend) ahead of 1.3255 (55-day sma) and then 1.3231 (100-day sma). ------- What will 2016 bring to the Forex traders? Attend our Forex Forecast 2016 - The Panel with Ashraf Laidi, Valeria Bednarik, Boris Schlossberg, Adam Button, Ivan Delgado and Dale Pinkert. Register for the live event on Dec. 18th and get the recording too. ------- For more information, read our latest forex news.