Global macro overview for 25/11/2016:
The IFO Business Climate data were released yesterday and it remained unchanged for the reported month. According to the Institute for Economic Research in Munich, the Business Climate Index came in at 110.4, just as a month ago and 0.2 points lower than expected. The Business Expectations Index, which tracks sentiment in the next six months, declined to 105.5 during the reported period from 105.9 in October, while the market analysts expected a slight increase to 106.00 points. The last sub-index, the Current Assesment, was released slightly better than expected at the level of 105.6, a 0.5 point better than a month ago. In conclusion, the released data suggest that executives remain positive about the country's economic growth, despite the uncertainties hanging over Brexit negotiations and Donald Trump's presidency.
Let's now take a look at the EUR/USD technical picture at the 4H time frame. The positive divergence between the price and the momentum oscillator is making the pair to bounce and challenge the next important resistance at the level of 1.0665. Only a sustained break out above this level will confirm the temporary bullish relief rally is in place.
