Global macro overview for 27/05/2016:
The Durable Goods Orders data has been revealed recently and they were better than expected. According to the US Commerce Department, the orders for durable goods ( lasting more than three years) increased to 3.4% vs. 0.5% expected and 1.9% prior. Moreover, previously reported durable goods for March posted a 1.3% increase, but it was revised upside to 1.9%. The most important orders came from transportation sector, commercial planes in particular. This orders accounted for 85% of the increase in April bookings. In conclusion, the optimistic approach from buyers might be reflected in the next GDP reading, as such a strong numbers will add more to the next estimated GDP reading or revise the previous one upward.
Let's now take a look at EUR/USD technical picture in 4H time frame. The rising bullish divergence might be the first warning of a possible corrective rally to the upside as the technical support at the level of 1.1142 has so far hold the line. Nevertheless, from the swing high at the level of 1.1615 bears were in control over the market and not much has changed since that. In case of a downside break out the next support is seen at the level of 1.1056.