Global macro overview for 17/01/2017:
The Center for European Economic Research (ZEW) polls financial experts throughout Europe every month in order to make a medium-term forecast about the economic situation. The ZEW Current Situation index reflects this approach as it jumped to 77.3 points from 63.5 points a month ago, which is better than 65.0 expected figure. Moreover, the ZEW Economic Sentiment index increased to 23.2 points from 18.1 points a month ago and hasn't beaten market expectations of 24.3. The ZEW experts say that the sharp rise in sentiment is triggered by the improved economic situation in European countries and fairly good flash German GDP numbers and Eurozone industrial production in November. In conclusion, today's mixed bag of data shows, that investors are still nervous about the future, but are ready to invest if those fears don't materialize.
Let's now take a look at the EUR/USD technical picture in 4H time frame after the data were published. After the bounce from the weekly pivot at the level of 1.0598, the market is flirting with the technical resistance at the level of 1.0670. So far no decisive break out has happened. Judging by the waning momentum, this might be the beginning of a reversal for this pair. However, in case of a further breakout, the next technical resistance is seen at the level of 1.0874.
