FXStreet (Mumbai) - Despite, expectations of a dip in the German business morale once again, the shared currency continues to edge higher against its American rival in the European session, with EUR/USD a whisker away from hourly 50-SMA located at 1.0837. EUR/USD extends gains on negative stocks As we step into the European session, the same set of factors viz., oil and stocks continue to affect sentiment across the financial markets. A renewed selling wave in the oil prices rattled investors’ confidence once and hence, the traders moved away from risky assets such as stocks, USD and boosted the demand for the safer bets EUR. Currently, the EUR/USD pair trades 0.28% higher at fresh session highs of 1.0829, holding firmly above 1.08 handle since early Asia. The European stocks quickly reversed their opening gains and reverted in the negative territory, triggered a fresh bout of risk-aversion across the board. The pan-European benchmark, the Euro Stoxx 50 is down -0.60%. While both crude benchmarks are down nearly 3%. Markets are bidding up the common currency ahead of the German IFO surveys which are expected to disappoint markets once again. The closely watched Ifo Business Climate Index in Germany is expected to tick down to 108.5 in January, from the 108.7 booked last month. The Current Assessment sub-index is seen at 112.7 from the 112.8 booked a month ago. Besides, ECB Chief Draghi’s speech will be closely eyed for fresh cues on the ECB’s easing prospects after a more than expected dovish ECB decision last week. EUR/USD Technical Levels In terms of technicals, the pair finds the immediate resistance is seen at 1.0837/50 (1h 50-SMA/ round number). A break beyond the last, doors will open for a test of 1.0900 (round number/ daily high). On the flip side, the immediate support is placed at 1.0803 (Jan 13 Low), below which 1.0787/77 (daily S2/ Jan 21 Low) could be tested. For more information, read our latest forex news.