FXstreet.com (Barcelona) - The USD/CHF has dropped about 170 pips in Tuesday European session after the release of a lower than expected Consumer price index in Switzerland in January.

Dollar rallied in Asian session to 1.1781; 8-week high, from 1.1502, to drop back to support level at 1.16 after the release of Swiss CPI data. Next support levels at this moment are 1.1590 and 1.1574. On the upside a rebound could take the USD back to 1.1638 and 1.1679.

On the bigger picture, the USD CHF sows an strong upside pace trading into an steep upward channel from 1.0370, 6-month low at Dec 29. 1.1780, is the next important level in the four hour chart.