Global macro overview for 29/09/2016:
The US durable goods orders data were released yesterday, and it positively surprised the market participants. According to the US Department of Commerce, the durable goods orders dropped less than expected by 1.0% on month to month basis. The number revealed 0.0% change on a monthly basis in August, following the preceding month's downwardly revised gain of 3.6%. The biggest contributor for this flat reading was 21.6% drop in civilian aircraft demand. In conclusion, the flat reading on the durable goods orders data may be an excellent forecast for the US output, as this kind of data are typically sensitive to economic changes. So far, no big damage has been done, and global investors should wait for the next reading to confirm the incoming decline/expansion.
Let's now take a look at the EUR/USD technical picture on the 4H time frame. The overall bias remains bearish mainly due to the sequence of lower highs that constitute the bear market. As long as the important levels are not violated, the market will remain in a sideway trading zone. The next support is seen at 1.1180 and the next resistnace lies at 1.1254.
