Global macro overview for 21/07/2016:
The main fundamental event of the day is the ECB's interest rate decision, together with the marginal lending facility and deposit facility rate. The event is scheduled for 11:45 am GMT and the market participants expect no change in the ECB rate decision (0.0% vs. 0.0% expected). Despite the recent Brexit vote, the ECB should adopt a wait-and-see approach and not to change the interest rate, as estimating the influence of Brexit on financial markets should take more time, so the September meeting appears as more appropriate for now. In conclusion, the ECB monetary policy is already in high stimulus mode and there is not enough hard data to justify the next interest rate cut for now.
Let's now take a look at the EUR/USD technical picture on the daily time frame. The market has broken below the golden trend line and tested it from below. This might mean that the bear camp is getting ready to push the prices lower and the upcoming macroeconomic event might trigger this move towards the next support at the level of 1.0910 and below.
