USD/CHF drops a hundred pips as Fed leaves rates unchanged

FXStreet (Córdoba) - USD/CHF dropped sharply from 0.9720 toward 0.9600, losing more than a hundred pips in less than an hour. The pair is trading at daily lows around 0.9615/20, as Janet Yellen answers questions from journalists.

The decision of the Fed to keep monetary policy unchanged weakened the US dollar across the board, particularly against commodity currencies. Stock in Wall Street remained steady initially but now are soaring after Yellen explained the decision and the outlook. “In light of the heightened uncertainties abroad and the slightly softer expected path for inflation, the committee judged it appropriate to wait for more evidence, including some further improvement in the labor market, to bolster its confidence that inflation will rise to 2% in the medium term”, said Yellen.

USD/CHF technical levels

USD/CHF reached the lowest level in two weeks after breaking the 0.9665 area (Sept 14, 15, 16 lows). If it continues to slide, potential support levels might lie at 0.9600 and 0.9560/70. On the opposite direction, resistance might now be seen at 0.9665, 0.9690 and 0.9725/30 (daily high).