Global macro overview for 24/10/2016:
The series of flash manufacturing and services PMI data from the Eurozone were published this morning and they were mostly better than expected. Germany Manufacturing PMI was released at the level of 55.1 vs. 54.3 prior and 54.3 expected, and the Services PMI was at the level of 54.1 vs. 50.9 and 51.9 expected. The French manufacturing PMI has beat expectations as well, printing the result of 51.3 vs. 49.7 prior and 50.2 expected. The only one that did miss the market expectations was the French services PMI that was released at the level of 52.1 vs. 53.3 prior and 54.1 expected. Overall, the composite PMI for the Eurozone is still growing and it is currently at the level of 53.7 points (52.8 expected and 52.6 prior). According to the data, the economy does not look bad in the fourth quarter, enjoying its strongest expansion so far this year with the promise of more to come.
Let's now take a look at the EUR/USD technical picture on the 4H time frame. After the sell-off occured last week, the market is trying to bounce back amid positive reports from the Eurozone. Nevertheless, the bulls look too weak to test the nearest technical resistance at the level of 1.0909 as the bounce is really marginal. The sequence of lower highs and lower lows clearly indicates a down trend and any rally attempt will be considerd only as corrective.
