- The dollar is consolidating just below the long-term highs at 1.0075.
- A retreat in risk appetite has favored the dollar.
- Upside moves remain capped by a key resistance zone at 1.0065/75.
The US dollar is holding steady above parity levels on Thursday near 1.0075, a three-year high. The pair’s reversal from 1.0065 has been supported by 0.9995 and the pair appreciated again during the US session to reach the 1.0050 zone.
The dollar rebounds as risk appetite disappears
The Dollar broadly depreciated today as the resignation of UK Prime Minister Liz Truss triggered risk appetite sentiment. However, the optimism was short-lived and the US dollar recovered lost ground later on.
The upcoming Federal Reserve monetary policy meeting, where a fourth consecutive rate hike of 0.75% is expected, continues to support the dollar.
Furthermore, US macroeconomic data has been moderately positive. Initial jobless claims rose below expectations in the week of14 of October, while existing home sales declined less than expected.
USD/CHF capped below a key resistance zone at 1.0065/75
The pair is now trading just below a major resistance zone at 1.0065/75 (13-14 Oct highs). Confirmation above that level would put the pair at three-year highs, targeting May 20, 2019 high at 1.0120 ahead of Apr 25, 2019 high at 1.0225.
To the downside, initial support is found at 0.9920 (Oct 18 low and 100-period SMA on the 4hr chart) below here 0.9780 (Oct 4-6 lows) and 0.9740 (Oct 30 low). of September).
Technical levels to know
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
