Global macro overview for 24/03/2016:
The Federal Reserve policymakers have surprised the markets with hawkish statements concerning another rate hike. Last week the Fed left rates unchanged and its dovish statement has left the market participants wondering whether the Fed will be able to hike again at least twice this year. John Williams, president of the San Francisco Fed, said on Monday, that the Fed had not changed its path of rate and could raise rates in April and June if economic conditions improve. Dennis Lockhart, another Fed policymaker from Atlanta, was also hawkish in his remarks about April rate hike possibility. He noted that the US economy was holding up well despite weak global conditions, close to full employment and the Fed's target of 2 percent inflation was clearly possible. In conclusion we should say, that despite the public remarks, the recent dot plot was lowered at the March meeting with more members being dovish on rate hikes.
Now let's take a look at the technical picture of the EUR/USD chart in the H4 time frame. After establishing the local high at 1.1343, the market reversed as the bears took control over it. The price managed to break out below the support at 1.1218 (now resistance) and currently it is trading at the 35% Fibo retracement at 1.1150. The bulls may regain control only by pushing the market above the resistance at 1.1218, otherwise the bears will push the market lower toward the next support at 1.1066.
