The USDCHF reversed from its current down trend during last week’s trading session after speculation that the U.S. central bank could raise rates as soon as early next year.
The dollar rallied on Wednesday after Fed Chair Janet Yellen indicated that the bank could begin to raise interest rates about six months after its bond-buying program winds up, which is expected to happen this fall.
The comments prompted investors to bring forward expectations for a rate hike to as early as March of next year.
The Fed also reduced its monthly bond purchases by an additional $10 billion to $55 billion at the conclusion of its two-day policy meeting, and said there was “underlying strength in the broader economy.”
Weekly bias for the week remains on the upside, as a fresh cross of 21 and 55 EMA’s emerged up on the 4hours time frame with oscillators such as MACD and RSI supports the bullish unfolding trend.A break of 0.88675 resistance would see further demand to 0.89285 and if momentum kicks in, more demand to 0.90364.