USDCHF Bulls Eye Key Resistance at 0.8200
The US dollar has been gaining strength in recent weeks following the Federal Reserve's rate hike on September 9. One currency pair that could offer interesting opportunities for traders is USDCHF, according to Gregor Horvat of Wavetraders.
In a webinar held on Monday, Horvat discussed the bullish outlook for the US dollar and highlighted several currency pairs that could benefit from further rate hikes by the Fed. He specifically pointed out the 0.8200 area in USDCHF as an important level to watch.
The Swiss National Bank has indicated its willingness to intervene in the FX market if the Swiss franc strengthens too much, keeping traders cautious on CHF. Meanwhile, the Fed's indication that further rate hikes may still be needed keeps traders bullish on the US dollar.
From a technical perspective, the 0.8200 level can be viewed as previous resistance turning into support. However, when combined with the Elliott Wave structure, it becomes even more interesting. The recovery from the lows is impulsive, while the pullback into 0.8200 was corrective, suggesting that the broader bullish trend could resume.