Global macro overview for 12/04/2016:
The negotiations between Greece and its lenders continue, but Greek Finance Minister Euclid Tsakalotos remains optimistic that a deal can be reached in time before the meeting of eurozone's finance ministers on April 22. The main issue is pension cuts that the EU officials are insisting on and that the Greek government is extremely reluctant to do. Moreover, Greece and its creditors are to agree a deal that will enable the next tranche of Greece's bailout to be released from the ECB. In conclusion, the never ending saga from Greece is hitting the news wires again as the main threat for eurozone's consistency. Nevertheless, it is worth mentioning that all previous negotiations were reached in the last minute, so there is no need to spread panic at the moment.
Let's now take a look at the EUR/USD technical picture in the 4H time frame. The sideways price action is now almost two weeks old as the market is trading between the levels of 1.1325 and 1.1453. Nevertheless, despite the fact that the price action still looks bullish, the growing bearish divergence between the price and the momentum oscillator might suggest that the corrective downside breakout is near.
