Global macro overview for 11/10/2016:
The ZEW Economic Sentiment Survey data were released this morning at it turned out to be better than expected. The overall ZEW Economic Sentiment for the eurozone was at the level of 12.3, way better than 6.3 points expected and 5.3 points a month ago. Moreover, in Germany the ZEW Economic Sentiment increased to the level of 6.2 points from 0.5 points a month ago (4.2 points were expected). In conclusion, sentiment has improved but it still remains below pre-Brexit levels. While the hard data currently suggests the Brexit impact has been muted, confidence still clearly remains fragile with the occasional increase.
Let's now take a look at the EUR/USD technical picture in the 4H time frame. The post-NFP rally has been completely retracted and now bears are testing the important support at the level of 1.1103. If this level is clearly violated, then the next support is seen at the level of 1.1043.
