USD/CHF drops to fresh 10-day lows below 0.99 on weak US-data

After losing 60 pips on Monday, the USD/CHF pair continued to add to its losses on Monday amid a persistent selling pressure seen on the greenback and dropped to its lowest level since May 7 below 0.99 at 0.9873. At the moment, the pair is trading at 0.9882, losing 0.83% on the day.

The dismal macro data from the United States weighed on the greenback, pushing the US Dollar Index to its lowest level in more than six months at 98.12. The Building Permits Change came in at -2.5% after increasing 3.4% in March, and the Housing Starts Change improved -2.6% in April from -6.6% in March. The latter data from the United States showed that the Industrial Production in April rose by 1%, beating the expectations of 0.3%, and allowed the DXY to find support. At the moment, the index is at 98.24, down 0.6% on the day.

• US: Building permits in April were at 1,229,000, 2.5% below the revised March rate of 1,260,000
• US: Industrial production advanced 1.0 percent in April

The economic calendar won't be offering any other macro data that could impact the pair's price action in the remainder of the session the US Dollar Index could remain as the sole driver. However, the fact that the U.S. equity indexes started the day higher suggest that the risk appetite continues to stay high on Tuesday, possibly limiting further losses.

• US stocks open higher; S&P 500 and Nasdaq hit record highs

Technical outlook

The pair could face the immediate support at 0.9860 (May 5 low), ahead of 0.9810 (Mar. 27 low) and 0.9765 (Oct. 7 low). To the upside, resistances align at 0.9900 (psychological level), 0.9960 (20-DMA) and 1.0000 (psychological level).