Global macro overview for 19/02/2016:
The US jobs data were released yesterday and it showed an unexpected decline to the level of 262,000, which was less than market expectations of 275,000. This data are reinforcing the view the labor market continued to strengthen as initial claims for state unemployment benefits decreased to the lowest level since November. Claims have now been holding below 300,000, which is associated with a healthy labor market, for 50 consecutive weeks - the longest period since the early 1970s. In conclusion, the data-depended Fed should now get some more evidence to justify further rate hikes as the labor market is slowly and gradually improving.
Let's now take a look at the EUR/USD pair following the data release. The golden trend-line support has been broken and now the market trades close to the important technical support at the level of 1.1059. Any breakout below this level would put bears back into control. Any bounce from this level would strengthen the bullish control over the market and would lead to test at the golden trend line.
