Global macro analysis for 29/06/2016:
The final reading of US Gross Domestic Product was revised upwards in the first quarter. Final GDP for the first quarter posted a gain of 1.1%, which was above the estimate of 1.0%. Moreover, this reading was stronger than the Preliminary GDP reading of 0.8%. Although the upward revision was a good news, the revised GDP report marked the weakest gain in a year. The US economy might find it difficult to increase the GDP over the summer period ( 2nd quarter). In conclusion, the FED will not have the good enough data to jutify another rate hike this year.
Let's now take a look at the EUR/USD technical picture in 4H time frame. After Brexit, the low at the level of 1.0911 still provides the support for bulls and it hasn't been violated yet. The market has been trading inside a quite tight congestion area between the levels of 1.0970 - 1.1097 and so far there is no clear evidence for any down trend resumption yet. Nevertheless, any bullish rally should be capped by the technical resistance at the level of 1.1180.
