USD/CHF en route to parity post-FOMC statement

• USD/CHF dipped with the FOMC statement but has now fully recovered the lost ground. 
• The USD is still the strongest currency and the dip was seen as a buying opportunity.

The USD/CHF is trading 10 pips below parity up 0.27% on Wednesday as the Federal Reserve released its widely awaited statement. 

Initially, the swissy had a downside reaction to the Fed statement to the 0.9940 level as the Fed was interpreted as rather dovish. However afterward buyers lifted the pair towards the 0.9980 level. 

Rates were left unchanged as it was widely expected and the statement used the word "symmetric" when referring to the inflation.

The statement was not as hawkish as it could have been, however, the Fed is still the most hawkish central bank. By contrast, the Swiss National Bank is not expected to hike any time soon. 

Technical outlook:

“The bullish momentum that began mid-February has guided the USD/CHF exchange rate towards the upper boundary of a dominant ascending channel. This mark 8.59% increase in price during the last two months. The currency pair has breached a resistance formed by the monthly pivot point at 0.9952.

It seems that this may indicate a continuous move north that might be expected within the following trading days. The next barrier that might hinder the Buck from gaining further strength is located near 1.0045 which is a resistance cluster set by the combination of the weekly R1 and the monthly R2.

In the meantime, technical indicators favor bulls to control the market within this session. However, a corrective move south is very likely before the aforementioned target could be fulfilled.” according to Dukascopy Bank