14.03.201712:37 Forex Analysis & Reviews: Global macro overview for 14/03/2017

Global macro overview for 14/03/2017:

Two sets of important data were released today in Germany: CPI and ZEW Economic Sentiment. The final reading for German February inflation data confirmed the flash estimate. Consumer prices rose 0.6% on the month, in line with market expectations. The annual inflation rate increased to 2.2% from 1.9%, also in line with consensus forecasts. Moreover, it was the highest annual rate since August 2012. Energy prices rose 7.2% on the year from 5.9% in January while food prices increased 4.4% over the year from 3.2% previously with a sharp seasonal increase in vegetable prices on the month amplified by adverse weather conditions. The ZEW Economic Sentiment data beat market expectations. Market participants assumed a slight increase from 17.1 to 19.3 points, but the figure revealed came in at 25.6 points. In conclusion, these better than expected data will help to hold the positive mood in the run-up to the FED interest rate decision on Wednesday.

Let's now take a look at the EUR/USD technical picture in H1 time frame. The pair is trading in oversold market conditions, just inside of the gray support zone between the levels of 1.0621 - 1.0640. Because this is a critical level for the bulls and bears, the next price action is likely to be sideways until the FED announces an interest rate decision on Wednesday.