All that was needed was a small nudge from a weak services PMI in Spain, and we have EUR/USD under the previous low of 1.2357.
The new low is 1.2353. Is it a real break or a false break that will result in a bounce? Update: we have a new low below 1.2350.
More: ECB Preview: A big step towards QE? 3 scenarios
Spanish services PMI came out at 52.7 points, significantly worse than 56.2 expected. Spain has been standing out with some growth so far and if this country is slowing, what does it tell us about the bigger ones? On the other hand, it is only the fourth largest economy.
The double bottom is at 12357 and so far we are on track to form a triple bottom with this minor dip. But perhaps after this dip, we’ll see a bigger drop soon enough.
The next support line is only at 1.2250, last seen in the summer of 2012. It is followed by 1.2150 and then by 1.2040, the July 2012 low that was followed by the “whatever it takes” statement by Draghi, that reversed everything.
For more, see the EURUSD forecast.
We have Italian services PMI at 8:45 GMT followed by the final services PMI at 9:00. And then, we get euro-zone retail sales.
In our latest podcast, we preview December’s big events, talk about the importance of jobless claims, the crash in oil prices and GOFO going negative:
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