USD/CHF extends downslide to hit fresh multi-week lows

The USD/CHF pair extended Fed-inspired bearish slide for the third consecutive session and touched fresh five-week lows during mid-European session.

A less hawkish Fed monetary policy outlook continues to weigh on the greenback, with spot prices losing over 150-pips since the Fed announcement on Wednesday. A fresh wave of greenback selling pressure on Friday, with the key US Dollar Index falling through the key 100.00 psychological mark, has been an exclusive driver of the pair's slide below mid-0.9900s, to the lowest level since Feb. 9. 

Moreover, a mildly cautious investor sentiment, ahead of G20 meeting, was also seen supportive for the Swiss Franc's safe-haven appeal and collaborated to the pair's downslide on the last trading day of the week.

Today's US economic docket, featuring the release of Prelim UoM Consumer Sentiment Index and Industrial Production data would now be looked upon for some immediate respite for the US Dollar bulls.

Technical levels to watch

From current levels, bears are likely to aim towards testing the very important 200-day SMA support near 0.9910 region, which if broken decisively might turn the pair vulnerable to extend the depreciating move towards yearly lows support near 0.9860 area. 

On the upside, any recovery attempt above 0.9970 level might now confront immediate resistance near parity mark, above which a fresh bout of short-covering has the potential to lift the pair back towards 100-day SMA support break-point, now turned strong resistance, near 1.0060 region.