USD/CHF steady above 1.0000, with upside attempts capped at 1.0065/75

• The dollar consolidates right below long-term highs at 1.0075.
• A pullback in risk appetite has favored the USD.
• Upside moves remain capped by a key resistance area of 1.0065/75.

The US dollar remains steady above parity levels on Thursday, at a short distance to the 1.0075 three-year high. The pair’s reversal from 1.0065 has been supported at 0.9995 and the pair appreciated again during the US session to reach the 1.0050 area.

The USD picks up as risk appetite fades

The greenback depreciated across the board earlier today as UK Prime minister Liz Truss’s resignation triggered a risk-on sentiment. Optimism, however, has been short-lived and the US dollar regained lost ground later on.

The upcoming Federal Reserve monetary policy meeting, which is expected to deliver a fourth consecutive 0.75% rate hike continues underpinning the US dollar.

Furthermore, US macroeconomic data has been moderately positive. Initial jobless claims increased below expectations on the week of October 14^th, while existing home sales declined less than expected.

USD/CHF limited below a key resistance area at 1.0065/75

The pair is moving now right below an important resistance area at 1.0065/75 (October 13, 14 highs). Confirmation above that level would set the pair at three-year highs, aiming for the May 20 2019 high at 1.0120 ahead of April 25 2019 high at 1.0225.

On the downside, initial support lies at 0.9920 (Oct .18 low and the 100-period SMA in the four-hour chart) below here 0.9780 (Oct. 4 and 6 lows) and 0.9740 (Sept. 30 low).

Technical levels to know