USD/CHF slides further below parity mark, hits five-week lows

Following its consolidative phase through European session, the USD/CHF pair finally broke on the downside and has now dropped to five-week low near 0.9970-65 region.

The post-FOMC bearish sentiment surrounding the greenback remained intact and has been a key factor weighing on the major. In fact, the key US Dollar Index was seen struggling near one-month lows, primarily led by a follow through rally in the GBP/USD major in wake of less dovish BoE. 

Data released from the US on Thursday showed housing starts and Philly Fed manufacturing index printing better-than-expected reading, while building permits and initial jobless claims falling short of consensus estimates. Mixed US economic data did little to assist the greenback's tepid recovery move witnessed during mid-European trading session, rather attracted some additional selling pressure around the major. 

However, a modest recovery in the US treasury bond yields might lend some support and collaborate towards limiting further downslide. 

Technical levels to watch

On a sustained weakness below 0.9965 level would turn the pair vulnerable to extend the depreciating move towards the very important 200-day SMA support near 0.9905-0.9900 region, with some intermediate support near 0.9940-35 area.

Meanwhile on the upside, any recovery attempts back above parity mark now seems to confront strong hurdle near 1.0015-20 area, above which a bout of short-covering is likely to boost the pair back towards 100-day SMA resistance near 1.0060 region.