Global macro overview for 23/11/2016:
The eurozone Flash Composite, Manufacturing and Services PMI metrics were all released this morning and they posted solid gains. The Services PMI was better than expected, it came in at 54.1 (vs. 53.1 expected and 52.8 prior). The Manufacturing PMI was also better than expected and it was released at the level of 53.7 (vs.53.2 expected and 53.5 prior). The overall Composite PMI for the eurozone was released at the level of 54.1, which was again better than expected and up from the prior reading of 53.5. All this upbeat data might suggest, that a flash fourth-quarter forecast for 0.3% GDP growth might be upgraded. Besides, all PMI readings are above 50 that indicates expansion, so the broad trend remains on track for modest growth.
Let's now take a look at the EUR/USD technical picture in 4H time frame after the data release. The bounce from lower low at the level of 1.0568 does not look too impulsive and the bull camp is not strong enough to break out above the technical resistance at the level of 1.0665 yet. Nevertheless, the growing bullsh divergence between the price and the momentum oscillator favors the counter-trend relief rally to happen any time soon.
