Global macro overview for 19/04/2016:
The New York Fed President William Dudley spoke yesterday about the future Fed policy concerning the interest rates. In his opinion the current economic environment is highly in favor of a further rate hike, but the Fed remains cautious and data depended. He reiterated, that he was confident that too low inflation would climb to a 2% target over the next few years if the current economic growth is sustained. In conclusion, his speech was very hawkish and in favor of a next rate hike. Please remember, that Fed Chairperson Janet Yellen reiterated in the last conference speech that two more rate hikes this year are still on the table.
Let's now take a look at the EUR/USD technical picture in the 4H time frame. The yellow rectangle congestion zone was broken to the downside and now the market is testing it from the downside. A failure to break out higher is anticipated here and another lower low should happen soon. Only a sustained violation of the recent high at the level of 1.1465 would put bulls back to control, otherwise bears are still the major force in this market.
