Global macro overview for 25/05/2016:
The German ZEW Economic Sentiment data released yesterday were significantly worse than expected. Marked participants anticipated slight improvement from the level of 11.2 last month to 12.1, but the actual print of 6.4 leaves not room to doubt, that the Brexit uncertainty is starting to affect other Eurozone countries. This is the first important decline in sentiment among the German businessmen in three months. If there is no improvement in the UK, the mood might get even worse and enter the negative territory soon.
Let's now take a look at the EUR/USD technical picture in 4H time frame. The important level of 1.1215 has been violated and bears have managed to push the price even lower towards the next important support at the level of 1.1141 (testing now). Nevertheless, the signs of a growing bullish divergence might trigger the relief rally, but it is unlikely to break out above the level of 1.1357 anyway.
