Global macro overview for 09/09/2016:
As anticipated yesterday the ECB left the key interest rates unchanged at the level of 0.00%. Moreover, the Deposit Facility Rate and Marginal Lending Facility were unchanged as well (-040% and 0.25% respectively). The 1.7T Euro stimulus program has been left unchanged as well, which was quite surprising if one takes into the account post-Brexit situation and economic projections. At the press conference, ECB President Mario Draghi said that uncertainty over Brexit was among the factors dampening the Eurozone's growth and he unveiled a slightly weaker economic outlook for the bloc. On the other hand, the inflation projection made by the ECB did not come true and this is the biggest worry for Draghi right now: after more than three years the Eurozone inflation remains persistently below the 2% target. In conclusion, the interest rate decision and Draghi's remarks at the press conference were highly anticipated, so no real game-changer news were shared among global investors yesterday.
Let's now take a look at the EUR/USD technical picture in 4H time frame after the ECB news release. Despite the initial rally, bears have managed to push the prices lower at the end of the day and the golden trend line hasn't even been tested properly. The next support is seen at the level of 1.1250 and the next resistance is seen at the level of 1.1338.
