The USDCHF has broken above its recent highs, turning sellers into buyers. Last week, the price reached around 0.8090 from Wednesday to Friday, with strong buying momentum pushing it up to 0.8116. This price level matches last week’s high on Tuesday. If this level is crossed, prices could rise further to a range between 0.81468 and 0.8155, and then potentially up to the August 1 peak of 0.81703.

The Impact Of New Tariffs

The August peak was marked by President Trump’s announcement of a 39% tariff on most Swiss exports, starting August 7, 2025. These tariffs impact sectors like luxury watches, machinery, and precision tools, but exclude pharmaceuticals. A technical analysis video on the USDCHF discussed these levels and developments in detail. We see a clear upward trend in USDCHF past the 0.8090 resistance level. This indicates that sellers have stepped back, and buyers are now in control. The main focus is on breaking last Tuesday’s high of 0.8116. This movement is primarily driven by the new 39% US tariff on Swiss goods that took effect on August 7. The policy targets Switzerland’s key industries, such as watchmaking and machinery, putting pressure on the Swiss franc. The market is anticipating significant economic challenges for Switzerland.

Strategies and Market Reactions

Recent data shows the Swiss manufacturing PMI for July unexpectedly fell to 44.2, indicating a sharp contraction. This is the lowest reading since the start of the 2020 pandemic, suggesting that industries are preparing for a decline in US orders. Markets are now considering a 75% likelihood of an emergency rate cut by the Swiss National Bank. On the other hand, the US dollar remains strong following the robust jobs report from August 1, which revealed over 250,000 jobs added. This strength, combined with the weakness of the Swiss franc, creates strong upward momentum for the pair. Implied volatility on USDCHF options has increased by 20% in the past week, reflecting greater uncertainty. Given this momentum, buying call options could be a good way to benefit from further upward movement. Targeting strikes above the current price, such as 0.8150 or 0.8175, could provide significant leverage if the pair continues upward towards the August 1 high. Consider options that expire in late September or October to allow time for the trend to unfold. For those with a moderately bullish view, selling out-of-the-money put options with a strike price around 0.8050 could be a good strategy to collect premium. This level should now provide strong support following the breakout. Alternatively, a bull call spread could help define risk by buying a call and selling a higher-strike call at the same time. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now