16.09.201610:23 Forex Analysis & Reviews: Global macro overview for 16/09/2016

Global macro overview for 16/09/2016:

The good data from US job market were released yesterday: the unemployment claims remains below 300K (260k vs. 262k expected and 259k prior). It was the 80th consecutive week initial jobless claims remained below the 300,000 level, the longest streak since 1973. Moreover, the continuing claims decreased as well to the level of 2143k, a 7k less than the anticipated number of 2150k and 1k more than a month before. In conclusion, the data do not justify the lack of the FED action, so the possibility of a September interest rate hike increases after this data.

Let's now take a look at the EUR/USD technical picture in the 4H time frame. The key support and resistance levels have not been violated even after the ECB meeting last Thursday, so we might assume the market is now trading inside of the horizontal zone that is defined by two important levels: 1.1365 as the resistance and 1.1120 as the support. Only a clear and sustained violation of any of those levels would stop the horizontal corrective cycle and resume the trend.