Global macro overview for 25/08/2016:
The Existing Home Sales data from US disappointed global investors. According to the National Association of Realtors, sales of existing properties dropped more than expected last month to the level of 5.39M (-3.2%), while economists anticipated just a slight decrease to the level of 5.52M (-0.1%) from 5.57 (1.1%) a month ago. Nevertheless, economists blame the seasonal factors and still expect the further sales to pick up later this year. In conclusion, the housing sector plays a vital role in the US economy results, but is not being counted to the overall GDP figures mainly due to its sensitivity to business cycle twists.
Let's now take a look at the EUR/USD technical picture in the 4H time frame. Bears have managed to push the price lower towards the important key support at the level of 1.1233, but the market reversed after it hit the dashed blue trend line. Currently, the market is still trading in tight horizontal congestion zone between the levels of 1.1363 - 1.1233 as it is awaiting the Jackson Hole economic summit.
