Global macro overview for 17/12/201

Mario Draghi is the master of selling a positive image of the state of the Eurozone economy and a well-known propagator of an optimistic view of its prospects. However, the breakdown of the data from this year and the return of disagreements to the political scene with the simultaneous deterioration of the external environment is a combination against which even Draghi had to capitulate.

The ECB President sounded gentle at the conference last Thursday because every other attitude would not stand up to the facts. Subsequent evidence of trouble is coming in the morning in the form of fatal values of macro indicators from China and the continuation of PMI decreases for European economies.It is worth noting that the improvement of communication by central banks means that historical decisions - and that is definitely the termination of asset purchases - are not accompanied by an explosion of volatility on the currency market, or strong reshuffle in the bond market. The investors had many months to digest ECB steps.

Let's now take a look at the EUR/GBP technical picture at the H4 time frame. The market has managed to return towards the swing technical resistance zone between the levels of 0.9050 - 0.9098, but so far failed to break through. Nevertheless, the trend line has prevented the larger down correction and the market is bouncing from the level of 0.9000. The conditions are now overbought, but the momentum remains strong and positive, so bulls might try to break above the resistance once again soon.


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