Global macro overview for 13/12/2016:
The ZEW Economic Sentiment indicator, aggregating economic forecasting group of German institutional investors and analysts for the next six months, increased to 18.1 points, while market participants expected only a slight increase to 16.5 points from 15.8 a month ago. The ZEW Current Situation indicator, which describes the current economic conditions in Germany, rose from 58.8 points in November to a level of 63.5 in December. According to the ZEW Institute, despite the fact that the outlook for the coming months remains at the same level, this recent solid improvement in the assessment of current conditions makes both readings positive. Meanwhile, the economic sentiment for the Eurozone countries improved as well. This ZEW index rose in December to a level of 18.1, clearly exceeding the previous reading of 15.8 and the forecast of 16.8. In conclusion, a bunch of solid data from Germany should help to improve the overall sentiment on the financial market until the FED meeting later this week.
Let's now take a look at the EUR/USD technical picture in the 4H time frame. The market is trading just around the weekly pivot at the level of 1.0618 and it looks like bears are in control over this market. The next support is seen at the level of 1.0505 and the next resistnace is seen at the level of 1.0710.
