Global macro overview for 08/04/2016:
Fed's Chair Janet Yellen said yesterday that the US central bank had not made a mistake by hiking interest rates in December. It is an action that was followed by massive turbulence in financial markets and further weakening of the global economy. She added that the US economy remains on a solid ground with some signs of inflation, decreasing unemployment, and increasing average hourly pay. That means that inflation would not be held down much longer by a strong US dollar and low oil prices. In conclusion, the Fed remains on track for further interest rate increases as long as the data justify such a move.
Let's now take a look at the EUR/USD technical picture in the H4 time frame. The market has made some kind of a temporary local high at the level of 1.1452 and now the bears are trying to regain the control over it. Any break out below the support at the level of 1.1343 will confirm the view of the bearish correction to come soon.
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