Global macro overview for 08/09/2016:
Main macroeconomic events of the week, the ECB interest rate decision and ECB press conference, are scheduled for release at 13:45 GMT today. The market participants expect the ECB to leave the interest rate unchanged at the level of 0.00%. No new action is expected from the EBC this month, but its current situation is not a very pleasant one. Inflation and economic growth are clearly not accelerating higher, especially after Brexit. Moreover, the biggest problem seems to be in the limits of assets the ECB can purchase under the rules of the quantitative easing program. Any change to QE will likely require the approval of Germany, which is hardly to come easy. In conclusion, a very interesting event will happen today and traders and investors from all over the word will keep an eye on the ECB decision and Mario Draghi press conference afterward.
Let us now take a look at the EUR/USD technical picture on the 4H time frame. Bulls have managed to break out higher above the technical resistance at the level of 1.1241 and it looks like they are trying to test the golden trend line again from the downside. Any breakout higher will be considered even more bullish with a target at the level of 1.1428.
