OANDA:EURUSD EUR/USD gained traction and headed towards 1.0810 during the European session on Wednesday. Although the German IFO survey showed worsening business sentiment, the improvement in the Expectations Index helped the Euro find demand.
On the downside, EUR/USD could extend the recovery and target 1.0835 (50-period SMA) and 1.0865 (38.2% Fibonacci retracement) if it can start using 1,0805 (psychological level, 20-period SMA, 50% Fibonacci retracement) as price support
EUR/USD has struggled to gather recovery momentum after closing in the negative territory below 1.0810 on Tuesday. The risk-averse market atmosphere is likely to continue to affect the pair in the short term and a 4-hour close below 1.0775 could open the door for an extended slide.