Global macro overview for 22/08/2016:
This week main macroeconomic event is US Federal Reserve Bank of Kansas City's annual Economic Policy Symposium in Jackson Hole, Wyoming. Market participants around the world have patiently accepted months of mixed messages from officials over the path of US monetary policy. Nevertheless, just on this Friday, FED chairwoman Janet Yellen could offer strong hints regarding the further policy towards higher borrowing costs in the world's largest economy. The interest rates are on the record-low levels and any hawkish tone of the anticipated Yellen's speech will immediately catch the attention of the bullish biased US Dollar investors.
Let's now take a look a the EUR/USD technical picture in the 4H time frame. The big, Brexit down candle had been retraced by almost 80% by bulls and now there is no real evidence of a reversal at this time yet. The key support is at the level of 1.1232. If this level is violated, bears will start to gain the control over this market again.
