Global macro overview for 23/05/2016:
A series of PMI Manufacturing data has been released this morning and it looks like the eurozone recovery might pick up some steam at last. Among all major European countries only the French Manufacturing PMI was below the expectations (48.3 vs. 49.0 and 48.0 prior) and the rest of the indices, both on manufacturing and services sectors, were better than expected ( with Germany leading the way). Nevertheless, the composite PMI for the whole eurozone was lower than expected ( 52.9 vs. 53.2 and 53.0 prior). In conclusion, the PMI readings are still above 50 (the number that is a gauge for the overall performance), which means the services and manufacturing sectors are still expanding slowly, but surely.
Let us now take a look at the EUR/USD technical picture on the 4H time frame. The important support at the level of 1.1215 had been violated last week and now is being tested again. The market rally then was capped below the dashed black trend line as bears took back the control over the market. The next support is seen at the level of 1.1142 and in case of a breakout, another one is at the level of 1.1056.
