USD/CHF fails to hold above 0.99, looks to close the day in the red

• DXY consolidates daily losses below 93.
• S&P 500 turns negative on the day.
• Consumer confidence in the U.S. declines in December.

After rising above the 0.99 mark during the European trading hours, the USD/CHF pair reversed course and dropped to a fresh six-day low at 09863 in the NA session. As of writing, the pair was trading at 0.9870, down 0.25% on the day.

The broad-based selling pressure seen on the buck on Wednesday seems to be the primary driver of the pair's price action on Wednesday. After the Conference Board announced that the consumer confidence in the U.S. weakened in December, the US Dollar Index dropped to its lowest level since late November at 92.53. However, amid a lack of fresh catalysts, the index started consolidating its losses and was last seen losing 0.28% on the day at 92.58.

On the other hand, after starting the session slightly higher, major equity indexes in the U.S. struggled to gather momentum and the S&P 500 Index pared its modest gains to turn negative on the day, helping the safe-haven CHF remain resilient against its rivals. 

Despite today's price action, however, the pair is unlikely to make a decisive move in either direction in the remainder of the week as the trading volume is expected to remain low ahead of New Year's holiday.

Technical levels to consider

The pair could encounter the first technical resistance at 0.9900 (psychological level/50-DMA) ahead of 0.9935 (Dec. 15 high) and 1.0000 (parity mark). On the downside, supports could be seen at 0.9835 (Dec. 19 low), 0.9800 (100-DMA) and 0.9745 (200-DMA).