USDCHF – US Dollar Surges As Fed Hikes Interest Rates
- The US Dollar surged higher sharply against most major currencies as the fed decided to raise rates.
- There was a bearish trend line formed on the hourly chart of USDCHF, which was broken at 1.0105 for an upside move.
- Yesterday, the fed interest rate decision was announced by the Board of Governors of the Federal Reserve.
- The result was as expected, as the fed increased the interest rates from 0.5% to 0.75%.
USDCHF Technical Analysis
The US Dollar popped higher sharply against the Swiss franc after the fed interest rate decision to break the 1.0100 resistance. There was a crucial bearish trend line formed on the hourly chart of USDCHF, which was cleared at 1.0105 for a spike higher.
The pair traded as high as 1.0250, and currently correcting lower. It already tested the 23.6% Fib retracement level of the last wave from the 1.0083 low to 1.0250 high.
It looks like the pair is in a solid uptrend, and may trade further higher in the near term towards 1.0260.
Fed Interest Rate Decision
Recently, there was a major risk event in the US, as the fed interest rate decision was announced by the Board of Governors of the Federal Reserve. The market was expecting a rate hike this time from 0.5% to 0.75%.
The result was positive, as the fed did raise the interest rate. It came as a positive news for the US Dollar, as the greenback surged higher. The statement highlighted that “Job gains have been solid in recent months and the unemployment rate has declined. Household spending has been rising moderately but business fixed investment has remained soft. Inflation has increased since earlier this year but is still below the Committee’s 2 percent longer-run objective, partly reflecting earlier declines in energy prices and in prices of non-energy imports.”
Overall, the US Dollar is in a bullish trend, and may continue to gains against the Swiss franc towards 1.0260.
– Guest Post Submitted By Aayush Jindal from the FXTimes Team