• EUR/USD trades on the defensive near the 1.20 level.
• Further downside targets the 200-day SMA (1.1939).

EUR/USD quickly reversed Monday’s uptick and re-shifts the attention to the downside, particularly to the key 1.2000 neighbourhood.

The continuation of the leg lower is seen meeting the initial support at the Fibo level (of the November-January rally) at 1.1976. Further south comes in the more relevant 200-day SMA at 1.1939.

Below the 200-day SMA (1.1937) the stance for EUR/USD is seen shifting to negative.

EUR/USD DAILY CHART