Global macro overview for 07/12/2016:
The eurozone third quarter GDP data was released yesterday and according to the second estimate by Eurostat, the economy expanded 0.3% on a quarterly basis in the Q3, which was in line with the first estimate and analysts' expectations. Moreover, on an annual basis, Q3 GDP growth was revised up to 1.7% from the previously published 1.6% gain. Second-quarter economic growth was also revised up by 0.1% to 1.7%. The advance in the Q3 was mainly driven by household spending (0.2%), and changes in inventories and public sector spending (0.1%). Exports and investment made none contribution to growth, while higher imports cut 0.1% from the final growth figure. In conclusion, all countries in the eurozone grew in the Q3, with Slovenia, Greece, and Portugal showing the highest economic growth.
Let's now take a look at the EUR/USD technical picture at the 4H time frame. The bulls have managed to break out above the technical resistance at the level of 1.0745, but the rally was capped just ahead of 38%Fibo at the level of 1.0807. Currently, the price got back to the support zone at the level of 1.0687 and the market seems to be waiting for a next trigger to resume the downtrend again. In case of a support violation, the next important techncial support is seen at the level of 1.0562.
