Global macro overview for 01/12/2016:
The US ISM Manufacturing Index data are scheduled for release at 03:00pm GMT today and market participants expect a slight increase. Last time the index came in at 51.9 points, this month the consenus is at the level of 52.1 point, which means a slight expansion in this sector of the economy. The reason behind this optimism are positive data across regional manufacturing benchmarks published by Federal Reserve banks. For the first time in two years, all five indices are above zero as of November. Moreover, IHS Markit's benchmark in November jumped to its highest level since March 2015, which is another signal of further improvement. In conclusion, interesting economic indicator to watch today as any reading better than expected might cause the stock to rally higher.
Let's now take a look at the EUR/USD technical picture in the 4H time frame. The pair keeps trading sideways in a range bound manner, but now it is possible that a triangle pattern is unfolding. The technical indicators are still pointing to the downside, so the eventual breakout of this pattern should be towards the techncial support at the level of 1.0550 and 1.5014.
