EUR/USD stays near lows around 1.2030, US ISM eyed

• The pair remains depressed in the area of 4-month lows.
• DXY moves higher and breaks above the ley 92.00 barrier.
• US ISM Manufacturing for the month of April next on tap.

The robust buying pressure around the buck is forcing EUR/USD to trade in fresh 4-month lows in the 1.2035/30 band.

EUR/USD looks to US ISM

The pair is extending the leg lower during the first half of the week, coming under heavy pressure amidst the continuation of the rally around the greenback, which managed to regain the 92.00 handle and above when tracked by the US Dollar Index, fresh multi-month tops.

EUR saw its downside accelerated this week after German advanced inflation figures came in on the weak side for the month of April, adding to recent softer-than-expected IFO figures and the continuation of the pause-mode in the ECB.

Data wise today, US Construction Spending is due later seconded by the critical ISM Manufacturing for the month of April, while the 2-day FOMC meeting is also kicking in today.

EUR/USD levels to watch

At the moment, the pair is losing 0.35% at 1.2029 and a breakdown of 1.2014 (200-day sma) would target 1.1916 (2018 low Jan.19) en route to 1.1718 (monthly low Dec.12 2017). On the other hand, the next resistance emerges at 1.2199 (10-day sma) followed by 1.2210 (high Apr.26) and finally 1.2263 (21-day sma).