Global macro overview for 02/01/2017:
According to the IHS Markit, the Eurozone Manufacturing PMI figures are at the highest level since April 2011.The final Eurozone Manufacturing PMI came in at 54.9 in December (Flash: 54.9, November Final: 53.7) which was in line with expectations. Moreover, the largest eurozone's countries beat the market expectations: German PMI is at 55,6 (35-month high), French PMI is at 53.5 (67-month high), Italian PMI at 53.2 (6-month high), Spanish PMI at 55.3 (11-month high). In conclusion, the average for the final quarter (54.0) was well above that for the third quarter (52.1) and signalled the fastest growth since the second quarter of 2011. Moreover, the average PMI reading over 2016 as a whole (52.5) was the highest annual average since 2010.
Let's now take a look at EUR/CHF technical picture at the daily time frame. The market is still trading below the dashed blue trend line and another lower high in the sequence has been made. The bears might now try to push the market lower towards the next technical support at the level of 1.0679, but if this level is violated, then the next support is seen at the level of 1.0624. Only a sustained breakout above the dashed blue trend line would invalidate this scenario.
