The USDCHF is on the rise as the US dollar gains strength against other major currencies. This currency pair is approaching important resistance levels, with possible targets between 0.8057 and 0.80597. On the hourly chart, USDCHF has crossed the 50% midpoint of July’s low-to-high swing at 0.80405. It is heading towards a key swing zone between 0.80438 and 0.80467. If it successfully breaks above this area, it could lead to even more gains. Analysts are keeping an eye on the 100- and 200-hour moving averages, which are close together in the 0.8057 to 0.80597 range, as the next targets.

Euro Dollar Trends

At the same time, EURUSD is also showing signs of a stronger dollar. It recently dropped to a low of 1.16404. The 100-bar moving average on the 4-hour chart is at 1.1640, and the 200-bar moving average is at 1.16419. These averages are aligned in this area, marking a crucial point for both buyers and sellers. The US dollar’s strength against the Swiss franc is driving prices towards the 0.8057-0.80597 resistance zone. This rise is supported by a stronger-than-expected US jobs report for July 2025, which showed unemployment dropping to 3.4%. Traders might consider using call options or call spreads to benefit from a possible break through this key zone in the upcoming weeks. Meanwhile, EURUSD is testing an essential support level around 1.1640, where the key moving averages have converged. The euro’s weakness is partially due to the German ZEW Economic Sentiment index recently hitting its lowest level since the 2023 energy crisis. The difference in economic data between the US and the Eurozone makes put options on the EURUSD an interesting option if this support level fails. The Federal Reserve’s hawkish tone from last week’s Jackson Hole symposium is driving the dollar’s rally. Markets are now anticipating a greater chance of a rate hike next month. In contrast, the European Central Bank and the Swiss National Bank are taking a more cautious approach due to slowing growth. This difference in policy suggests that the dollar’s strength may continue in the short term.

Market Context and Outlook

We saw a similar trend leading into the fourth quarter of 2024, where robust US data preceded a sustained dollar rally. Implied volatility on one-month forex options has begun to rise from the lows observed in June 2025, indicating that the market is gearing up for a significant move in these currency pairs. Traders might consider straddles or strangles if they think a breakout is on the horizon but are unsure of the direction from EURUSD’s key level. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now