USD/CHF is expected to continue its upside movement. The pair managed to break above its declining trend line which emerged on December 9, and is now accelerating on the upside. The rising 20-day and 50-day moving averages maintain a bullish bias, and the relative strength index stands firmly above its neutrality level at 50.
The widely-expected decision to lift the benchmark federal fund rate by a quarter-percentage point was taken by a unanimous vote of the ten members of the Federal Open Market Committee. Apart from raising interest rates, the Fed officials also signaled that they expect to raise short-term rates three times next year as the U.S. economy shows signs of improvement, up from their previous estimate of two increases. The U.S. dollar's surge after the interest rate increase helped to pressure prices of oil and precious metals.
Hence, as long as 1.0190 is not broken, we keep our positive view unchanged with a first up target at 1.0255. A break above this level would call for a further advance toward 1.0275.
The U.S. dollar was little changed after its retreat on Monday. The ICE U.S. Dollar Index managed to hold onto the 101.00 level. Traders were waiting for the highly-expected 25-basis-point interest-rate rise to be confirmed by the Federal Reserve, and watching closely if the central bank would indicate the pace of higher rates.
Hence, as long as 1.0145 is not surpassed, likely decline to 1.0080 and 1.0035 in extension.
Resistance levels: 1.0255, 1.0275, 1.0305
Support levels: 1.0170, 1.0145, 1.0110
The material has been provided by InstaForex Company - www.instaforex.comFrom www.instaforex.com http://ift.tt/2hwf3Cx
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