Global macro overview for 02/05/2016:
The PMI Manufacturing data for the eurozone was released earlier this morning. It had been excepted that the French PMI was still above the fifty-point level (Germany 51.8, Italy 53.9, Spain 53.5). The total PMI for the eurozone was at the level of 51.7 points, a little better than last month's reading of 51.5 points. As we know that the manufacturing sector represents nearly a quarter of total eurozone GDP, this set of data looks solid and promising. In conclusion, the business conditions in the manufacturing sector does not signal any significant deterioration in the eurozone manufacturing sector. Moreover, according to the current data, a further increase of business conditions is expected.Let's now take a look at the EUR/USD technical picture in the daily time frame after the data was released. Bulls broke above the golden trend line, but the growing bearish divergence should now prevent further advance. Moreover, the supply zone might put a lid at any further bullish rally as well. Nevertheless, if bears want to take the control over the market, they must break back below the level of 1.1215.
