Global macro overview for 31/05/2016:
The German unemployment data were released this morning and they were better than expected. The unemployment rate decreased from the level of 6.2% to the level of 6.1%, which is the lowest level since the reunification of Western and Eastern Germany. Data from the Federal Labor Agency in Nuremberg showed, that the number of people out of work fell by a seasonally adjusted 11,000 to 2.695 million in May. In conclusion, this data shows that the growth momentum in the eurozone's strongest economy remains strong as the GDP had increased much more than economist anticipations for the first quarter of 2016.
Let's now take a look at the EUR/CHF technical picture at the daily time frame. After the swing low at the level of 0.8566 from January last year, bulls managed to push the prices higher in a series of higher highs and higher lows. The recent high at the level of 1.1200 is the most important technical resistance right now, as it must be violated before the golden trend line is broken. Otherwise, bears will take control over this market with the aim to test the technical support at the level of 1.0808.
