USD/CHF climbs toward 0.9950 as Fed keeps monetary policy unchanged

Matías Salord FXStreet

USD/CHF jumped to fresh daily highs after the Fed’s decision to leave rates as expected. The pair rose from 0.9915 to 0.9940, hitting a fresh daily high. It was trading near the highs, with a bullish tone.

The greenback rose moderately across the board, after the US central bank, on a unanimous decision left interest rates unchanged, as expected. According to the FOMC, the slowdown that took place during the first quarter in the US economy is likely to be transitory. The Fed left the door open to a rate hike at the next meeting.

Fed leaves interest rates unchanged at May meeting

Equity prices in Wall Street rose modestly while US bond yields climbed to fresh highs after the statement.

Technical levels

The USD/CHF pair, earlier today, bottomed at 0.9889, the lowest since March 28. Since then it has risen more than 40 pips and is posting the biggest daily gain in weeks.

On the downside, support could be located at 0.9885/90 (daily low),0.9860 (Jan 31 low) and 0.9830 (Nov 11 low). To the upside, resistance might lie at 0.9940 (daily high) 0.9965 (weekly high) and 1.0005/10 (Apr 13 low).

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Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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