USD/CHF rebounds from fresh five-year lows as dollar recovers

• FOMC meeting: No change as expected, delivers a dovish message.
• DXY hits fresh two-years lows and then rebounds, still negative for the day.

The USD/CHF erased recent losses and is trading back above 0.9130. Following the FOMC meeting, it bottomed at 0.9116, the lowest level since 2015.

Fed leaves policy unchanged, dollar down and up

The Federal Reserve, as expected kept rates unchanged, offering no surprises in the statement. During the press conference, Powell mentioned high-frequency data shows a slowdown in the pace of the recovery. He said the central bank will do what it can for as long as it takes.

Initially, the greenback tumbled, hitting fresh monthly lows across the board but during the last minutes it reversed. The DXY bottomed at 93.18, the new two-year low and the rebounded trimming losses. It is hovering around 93.50.

Technical levels

The USD/CHF still holds a strong bearish bias and is about to post the seventh daily decline in a row. Now the immediate support is seen at 0.9110/0.9100 and below at 0.9070. On the upside, resistance levels might be located at 0.9155 (July 28 low), followed by the daily high at 0.9185/90.