Global macro overview for 27/09/2016:
The German Ifo Business Climate data were released this morning and it surprised the market participants by rising to the highest level since 2014 despite the economic uncertainty caused by Britain's vote to leave the European Union and growing Deutsche Bank problems. The Ifo Busines Climate jumped to the level of 109.5 points while the market participants did not expect any increase from last month's 106.3 level. Moreover, the preceding month's reading was revised up to 106.3 from the originally reported 106.2 points. In conclusion, the business sentiment in Germany is still strong and positive. Moreover, the expectations for the future are at the highest level as well.
Let's now take a look at the EUR/USD technical picture on the 4H time frame to see how this data influenced the exchange rate. The chart shows that the bulls' camp wasn't strong enough to break above the technical resistance at 1.1283 despite the positive data. Currently, the price is being pressured by the bears to move below the next support at 1.1211. The series of lower highs still hasn't been terminated.
