USD/CHF rallies after Fed decides to raise rates

The US dollar rallied across the board, taking USD/CHF to a 2-day high after the Fed announced its decision to raise the Fed funds target to 0.5-0.75% as expected.

While the vote was unanimous, the dot plot revealed members forecast 2 to 3 quarter-pint hikes in 2017. Four of 17 officials are projecting a half-point during the course of 2017 while six forecast 75 basis points worth.

USD/CHF rose sharply in the minutes that followed the release and reached a peak of 1.0179 in recent dealings. The pair was last trading at 1.0170, up 0.56% on the day.

Attention now turns to Fed’s Chair Janet Yellen, who will be speaking in a press conference at 19:30 GMT.

USD/CHF levels to consider

In terms of technical levels, next resistances are seen at 1.0198/1.0200 (Dec 12 high/psychological level), 1.0213 (Dec 9 high) and 1.0249 (Feb 1 high). On the flip side, supports could be found at 1.0083 (Dec 14 low), 1.0048 (Dec 6 low) and 1.0018 (Dec 8 low).