Global macro overview for 15/08/2016:
Disappointing data from the world's largest economy was released last Friday. According to the Department of Commerce, July U.S retail sales data was below market expectations at a seasonally adjusted 0.0% in the reported month, compared to the previous month increase of 0.8%. Moreover, core retail sales (excluding automobiles) dropped a seasonally adjusted 0.3% compared to the previous month's upwardly revised figure of 0.9%. The University of Michigan Consumer Sentiment survey turned out to be slightly better than expected as the US shoppers mood increased form 90.0 to 90.4 points in the reported month. In conclusion, this kind of data indicates, that uneven growth in the U.S. makes some market participants doubt whether the economy is strong enough to bear an interest rate hike. Next important FED meeting is scheduled for September.
Let's now take a look at the EUR/USD technical picture in the 4H time frame. After a false break out above the golden trend line, the market has declined towards the level of 1.1128 and now it is trading inside the daily range. The next resistance is seen at the level of 1.1219 and 1.1232.
