Global macro overview for 02/02/2016:
Another portion of the manufacturing PMI reports was delivered from the eurozone yesterday with the biggest gain from the Spanish economy ( 55.4 vs. 52.5 expected and 53.0 prior). It was rather a mixed set of data, where some countries like Germany reported growth in PMI as well ( 53.2 vs. 52.1 and 52.1 prior), France stayed in the same place (50.0 vs. 50.0 and 50.0 prior) and some deteriorated slightly (Italy: 53.2 vs. 54.9 and 55.6 prior; Switzerland: 50.0 vs. 51.0 and 50.4 prior). The biggest gain has been recorded in Spain mainly due to the largest increase in eight months from November 2013. Data shows that eurozone's countries which were harmed by the financial crisis of 2008 report slow-but-sure recovery in their manufacturing activity and further expectations remain positive.
Now let's have a look at the technical chart of EUR/USD. It looks like a big triangle pattern is being formed on the H4 time frame (dashed lines) and odds for the up side breakout are increasing. The next resistance is seen at the level of 1.0992 and any breakout higher might lead the market to the new highs above the level of 1.1059.