EUR/CHF just managing to hold above 1.0800 handle

Safe-haven flows continues to boost demand for the Swiss Franc as despite of a broadly strong Euro, the EUR/CHF cross hasn't been able to recover any lost ground after yesterday's slide.

On Tuesday, the cross erased 3-days of recovery gains and reversed from 1.0900 level and extended its slide to 1.0800 level after the ECB President Mario Draghi raised concerns over deflationary price pressure in the region and showed willingness to announce additional stimulus measures to combat low inflation.

Moreover, as we head closer to the crucial UK-EU referendum, termed as Brexit, uncertainty surrounding the outcome might continue to boost safe-haven flows to the Swiss Franc and restrict any swift recovery for the EUR/CHF cross.

Technical levels to watch

On a sustained weakness below 1.0800 level, now seems to open room for extension of the pair's near-term downward trajectory initially towards Nov. 2015 lows support around 1.0735 level before breaking below 1.0700 handle to continue with its depreciating move.

On the upside, 1.0880-1.0900 remains immediate resistance to conquer. This is closely followed by the very important 200-day SMA resistance near 1.0925-30 region. Only a sustained move back above this important resistance might negate near-term bearish bias and assist the pair to post additional recovery in the near-term.