EUR/USD around 1.2000, scope for a test of 2018 lows

• Spot tests lows around the key 200-day sma near 1.2000.
• The pair extends the drop to fresh 4-month lows.
• US ISM manufacturing missed expectations at 57.3 in April.

EUR/USD keeps the selling bias unaltered today and is testing the key 200-day sma around 1.2015 for the first time since early January.

EUR/USD offered despite US ISM

The pair keeps looking south today despite the key US ISM Manufacturing came in below expectations for the month of April at 57.3 vs. 58.4 initially forecasted.

Further data saw Construction Spending contracting at a monthly 1.7% during March and Markit’s manufacturing PMI at 56.5 during last month, matching prior surveys.

In the meantime, spot remains under heavy pressure and putting the psychological handle at 1.2000 the figure to the test, allowing for a potential visit to YTD lows at 1.1916 in case the selling bias gathers extra steam.

EUR/USD levels to watch

At the moment, the pair is losing 0.49% at 1.2012 and a breakdown of 1.2005 (low May 1) 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).