EUR/USD has turned bearish following Wednesday's sharp decline. The pair is likely to stay on the back foot with safe-haven flows dominating the financial markets on Thursday, FXStreet’s Eren Sengezer reports.

Euro's recovery prospects diminish

“Unless there is a significant positive shift in market mood, sellers are likely to retain control of EUR/USD action.”

“In case EUR/USD fails to reclaim 1.0470 (Fibonacci 23.6% retracement of the latest downtrend), the pair is likely to extend its slide toward 1.0400 (psychological level), 1.0380 (end-point of the latest downtrend) and 1.0360 (June 15 low).”

On the upside, the pair could recover toward 1.0500 (psychological level) and 1.0520 (Fibonacci 38.2% retracement, 50-period SMA, 100-period SMA on the four-hour chart) if buyers managed to flip 1.0470 into support.”