Global macro overview for 23/09/2016:
The US September Manufacturing Purchasing Manager Index is scheduled for release at 01:45 GMT and the index is expected to have declined a bit to 51.9 from 52 in August as the reading in July was 52.9, which was an eight-month high. It's a leading indicator of economic health as businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy. As long as the index stays above the 50-point level, the manufacturing sector of the US economy is expanding, so this kind of reading is a Dollar positive news.
Let's now take a look at the EUR/USD technical picture in the 4H time frame. Another set of lower highs has been made this week and the situation looks increasingly worse for bulls. None of the key levels has been violated yet, but it looks like bulls are unable to break out higher above the level of 1.1283. On the other hand, any break out below the level of 1.1120 will open the road to the next support at the level of 1.1043.
