EUR/USD falls to a low of 1.1309
Suddenly, the trading range between 1.1300 to 1.1400 is under threat after abysmal French prints - in which the yellow vest protests are being blamed - and continued weakness in the German prints.
If the ECB was hesitant to change its risks outlook from "broadly balanced" to "tilted to the downside" yesterday, there's more reason for them to consider doing so now after the numbers here. Yes, sure these are just survey data but the trend doesn't lie. The downwards trend in the PMI prints are well reflected in the sluggish Eurozone growth seen this year and there's no suggestions that it won't carry on until next year.
Currently, price is threatening a break of the 1.1300 handle as well as support from the 30 November low @ 1.1306. The latter has been a key support level that is helping to limit declines over the past two weeks. If that starts to give way, expect the floodgates to open as sellers will aim for the 76.4 retracement level @ 1.1276 next.
Update: Price now breaks below 1.1300 as it touches a low of 1.1298.
