Dollar Rises After FOMC Hikes Rates

The greenback jumped broadly on Wednesday evening and continued to trade stronger on Thursday as well, with the US Dollar index changing hands at around 94.60, which was some 0.35% higher on the day.

Bulls have pushed the index decisively above the stronger bearish trend line, which was at 94.25 and the price also jumped above the horizontal resistance of previous lows and highs at 94.40. From a short-term point of view, if the dollar trades above 94.40, the outlook seems cautiously bullish.

The next target might be around the 95 level, where previous highs and lows are also converged. Should the index overcome this level, further gains toward 95.50 might occur.

On the downside, the support is at 94.40 and if broken, the price could decline to the broken trend line, currently around 94.20. Another strong trading zone might be located at Wednesday's lows near the 94 mark.

Bond traders did not take the FOMC decision positively and, bond yields crashed, which might undermine the US Dollar, mostly against the yen.

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