USD/CHF is expected to extend its downside movement. The pair accelerated on the downside and is trading below its declining 20-period and 50-period moving averages, which play resistance roles and maintain the downside bias. The relative strength index is bearish below its neutrality at 50.
As it was widely expected, the Fed raised its target rate by 25 basis points to 0.75%-1.00%. Investors were relieved after the central bank pointed out that it would stick to its outlook of three interest rate hikes in total in 2017 and three in 2018. Meanwhile, Fed chief Janet Yellen said, "The simple message is the economy's doing well.We have confidence in the robustness of the economy and its resilience to shocks."
Therefore, below 1.0045, look for a new drop to 0.9945 and even to 0.9910 in extension.
Resistance levels: 1.0070, 1.0095, and 1.0135
Support levels: 0.9945, 0.9910, and 0.9865
