The confidence indicator failed to meet the expected rise from 74.5 to 74.7. In fact, data fell to 72.9 in December. In reaction to the publication, the market bounced to 1.3195. However, the eye remains to the downside right now.
The US economic calendar indicates a Chicago Fed National Activity index up to 0.10 in November, from -0.64 in the prior month (revised from -0.56). Durable Goods eased from 1.1% to 0.7% in November, not as weak as the expected 0.2%. Personal income rose from 0.1% to 0.6%, beating 0.3% consensus, and personal spending grew 0.4% as expected.
“The intraday bearish reversal made on 19 December close to the resistance at 1.3284 suggests a weakening short-term momentum”, wrote MIG Bank analyst Bijoy Kar, pointing to hourly supports at 1.3144 (17/12/2012 low) and 1.3041 (13/12/2012 low).