Global Macro Overview for 07/04/2016 (EUR/USD)
The Fed Meeting Minutes signaled that according to the policy makers, the April rate hike is unlikely. This confirmed the market growing anticipation and that the US central bank will act cautiously until the global economy regains steam. The US central bankers were concerned that the global headwinds might and slowing world growth could undermine corporate investment plans and hit US exports. In conclusion, policy makers had signaled that they expect to hike interest rates twice in 2016, but the exact timing of the hikes still remains unknown. The Fed's next meeting will take place on April 26-27 and market participants are not expecting any rate hike.
Let's now take a look at the EUR/USD pair technical picture in the 4H time frame. There is a clear forming of bearish divergence in this time frame, but the current price action does not confirm this view. Any break out higher above the level of 1.1453 would put bulls back to control. Any break out below the level of 1.1325 would result with immediate test of the level of 1.1220.
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