Global macro overview for 20/07/2016:
The number of US housing starts and building permits increased significantly in June, which might be a good indication, that housing market continues to perform strongly. The number of housing starts increased 4.8% a monthly to 1,189K and it was better than the expected number of 1,165K. Moreover, the building permits issued by US Census Bureau beat the market expectations as well. The released number was at the level of 1,153K:, a 1.5% higher than a month ago and better than the forecast of 1,150K . In conclusion, both released figures were better than a month ago and better than market expectations, so an important pillar of the US economy is continuing to perform well and might be an important contributor to the next quarter GDP report.
Let's now take a look at the EUR/USD technical picture in the 4H time frame. Bulls did not manage to break out above the important resistance at the level of 1.1185 and after a dashed trend line violation the market is now trending lower. The next support is seen at the level of 1.0970 and 1.0911.
