USDCHF: ⬆️ Buy
– USDCHF broke daily down channel
– Likely to rise to resistance level 0.8400
USDCHF currency pair recently broke the resistance zone between the resistance level 0.8300 (former support from the start of October, which stopped wave (b) at the end of October) and the resistance trendline of the daily down channel from the middle of October.
The breakout of this resistance zone accelerated the active impulse wave iii of the C-wave of the ABC correction (4) from the end of August.
Given the strongly bullish US dollar sentiment seen this week, USDCHF can be expected to rise further toward the next key resistance level 0.8400 (which stopped wave i in the middle of October), with a breakout opening the way toward 0.8450. The US dollar strengthened after higher-than-expected US inflation data for October raised the odds of a Fed rate hike in December to 87%.
If 0.8400 holds, USDCHF can correct down toward 0.8300 (now support). A daily close below the pivotal support level 0.8010 would cancel this bullish scenario.
In short, USDCHF stays bullish above 0.8300; the Fed (9 December) and SNB (10 December) decisions are the next key events.