Moving in tandem with the euro, the Swiss franc strengthened against the dollar, dragging the USD/CHF to a fresh 2-year low. The USD/CHF lost more than 160 pips throughout the day and hit a low of 0.8800 before finding support at the psychological level. The USD/CHF however, has bounced from lows and it is currently trading at the 0.8840 zone, still 1.3% below its opening price.
In terms of technical levels, the USD/CHF could find next supports at 0.8800 (psychological level/daily low) 0.8760 (Nov 3 2011 low) and 0.8700 (psychological level). On the upside, resistances could be faced at 0.8920 (10-day SMA) and 0.8965 (daily high).