USDCHF Bullish Setup Unfolds Near 0.8200

The US dollar's bullish outlook has been discussed by Gregor Horvat of Wavetraders, who believes that further rate hikes may be needed. In a recent webinar, Horvat highlighted several currency pairs with potential opportunities on the long USD side, including USDCHF.

The Swiss National Bank's reluctance to intervene in the FX market if the Swiss franc strengthens too much has kept traders cautious about CHF. On the other hand, the Fed's stance suggests that the US dollar could continue to rise.

Horvat specifically pointed out the 0.8200 area on the USDCHF chart as a key level of support. This area had been broken and then retested in three waves, but from an Elliott Wave perspective, it can be viewed as previous resistance turning into support.

The recovery from the lows has been impulsive, while the pullback to 0.8200 was corrective, suggesting that the broader bullish trend could resume. Traders were looking for more upside in wave three and later another opportunity to catch wave five.