The Chicago PMI came out weaker than expectations at 58.3 vs 60.0 estimate.
The November reading was 60.8. Above 50 is still more positive for the manufacturing sector. However, it does represent a slowing of the trend (2nd consecutive decline) and the move below 60 is the first look below that level since the July plunge to 52.
Chicago PMI comes in weaker at 58.3
Pending home sales for November will be released at 10 AM and are expected to rise by 0.5% vs a -1.1% fall in October. Below are the trends for that series.
Trends in US pending home sales.
Below are the trends for that series.
As far as the currencies, back on December 2nd I commented about the 1.2131 level for the EURUSD. Specifically, I wrote See: Forex Technical Analysis: I think I have had this dream before. Can the dream sequence end?:
Where can the EURUSD go, if the bears take the bulls by the horn and wrestle this market lower? A move below the low for the year at the 1.23607 will next target the 1.2329 low from 2008. Then comes the trend line off the lows from 2010 and 2012 at 1.2222. Finally, the 50% of the move up from 2000 low in the EURUSD to the high in 2008 comes in at 1.2131. This would be a nice target for December.
We are not too far from that level (in fact moving just below it now and it looks like a close below the level on December 31).
Although time does not stop, the story does tend to stay the same.
In looking back at old posts for references of the 1.2131 level (I simply searched for “1.2131”), the search results, took me back to the 1st time I was posting at www.forexlive.com back in 2012 (long story for another day). And true to my form, in July and August, I was harping on the 1.2131 level as a key level to eye for traders. At that time, the price was also moving toward the key target. The level was broken in July and a low of 1.2041 was reached. In August 2012, the low could only get to 1.2133 before the push higher began (did not approach since yesterday). Anyway, it was fun going back to memory lane. Time changes, but the “story” remains the same from year to year.
PS: here is a sample from that time…. EURUSD moves toward the days midpoint pre-Fed minutes
