EUR/USD drops further on US data, testing lows near 1.2330

• The pair is falling to fresh lows in the proximity of 1.2330.
• US Philly Fed manufacturing index missed estimates at 22.3 in March.
• US Empire State index, Initial Claims surpassed initial forecasts.

The selling pressure around the single currency is now gathering extra steam and pushing EUR/USD to challenge the 1.2330 region, or fresh daily lows.

EUR/USD weaker on data

Sellers rushed into the European currency on Thursday despite the US Philly Fed manufacturing index came in below expectations at 22.3 for the month of March.

However, the NY Empire State manufacturing gauge, Import Prices and weekly Initial Claims all surprised markets to the upside at 22.50, 226K and 0.4% MoM, respectively, lending some support to the buck.

Spot, in the meantime, remains on the defensive for the second session in a row today after failing once again to clear the area of recent tops beyond 1.2400 the figure.

The recent dovish tone from President M.Draghi seems to still be weighing on EUR-sentiment, as he stressed that the exchange level could hamper the inflation outlook.

EUR/USD levels to watch

At the moment, the pair is retreating 0.25% at 1.2336 facing the next support at 1.2273 (low Mar.9) seconded by 1.2206 (low Feb.9) and finally 1.2165 (low Jan.18). On the other hand, a break above 1.2446 (high Mar.8) would target 1.2537 (high Jan.25) en route to 1.2557 (2018 high Feb.18).