EUR/USD has recovered modestly following Thursday's steep decline. The pair could extend its correction in case sellers give up on 1.04, FXStreet’s Eren Sengezer reports.

Euro to attract buyers if the 1.04 level is confirmed as support

“If Wall Street's main indexes open decisively higher and gather bullish momentum, EUR/USD could continue to erase its weekly losses.”

“The next recovery target is located at 1.0470 (static level, 20-period SMA) ahead of 1.05 (psychological level).”

“A four-hour close below 1.04 (psychological level) could be seen as a bearish development and open the door for additional losses toward 1.0370 (static level) and 1.0340 (January 3, 2017, low).”