USDCHF looking for channel-down pattern breakout

USDCHF looking for channel-down pattern breakout
Friday was a game-changer for the American Dollar. Great NFP in the US were interpreted as an open door to further FED tightening. The logic behind this is that the economy is doing great and FED can further raise rates to combat inflation. Raising the rates mean stronger USD and this is why the American dollar surged at the end of the last week.
In this piece, we will focus on the USDCHF who is still trading inside of the channel down formation (blue lines). Last week, the price managed to defend the lower line of this formation along with the key horizontal support on the 0.91 (green). Today, after the successful bullish defense, we are testing the upper line of this pattern. A breakout looks probable and should it happen, we will have a short-term buy signal with a target on the yellow resistance of 0.936.

It would be, however, a short-term one. To get a proper, long-term buy signal we would have to see the price coming back above the yellow area, as well as above the black up trendline connecting higher lows since the beginning of 2021. With the current sentiment, I think that a long-term bullish scenario is very probable.
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