Global macro overview for 05/09/2016:
The final reading of the Eurozone PMI Services has been published early this morning and it was rather disappointing for the market participants. The PMI Services from the eurozone's power horse, Germany, turned out to be worse than expected (51.7 vs. 53.5 and 53.3 prior), together with overall Eurozone PMI (52.8 vs. 53.1 and 53.1 prior). In conclusion, the euro area's economy continued to expand at a broadly steady pace in August. The rate of the increase edged down to a 19-month low, however, mainly due to a weaker rate of expansion in Germany.
Let's now take a look at the EUR/USD technical picture on the H4 time frame. The clear rejection of the technical resistance at the level of 1.1243 might suggest that bears are in control over this market, but to confirm this, the bear camp must break out below the next support at the level of 1.1127. Otherwise the range-bound price action is anticipated.
