Global macro overview for 19/12/2016:
No more good data from the US housing market for the last quarter. According to the US Department of Commerce, new home construction decreased 18.7%, which is the biggest fall in almost two years, to a seasonally adjusted annual rate of 1.09 million units in November. This number is below the market expectations of 1.23 million for the reported period. Moreover, the October data was revised up to a 1.34 million-unit from 1.32 million, and this was the highest number since July 2007. In the other news from the US housing market, building permits declined 4.7% to an annualized rate of 1.20 million units. This number was again lower than market forecasts of a 1.24 million-unit increase. In conclusion, the housing data are getting very violate these days as Trump's victory in the US presidential election changed the outlook in this sector for the US economy: he promised more spending on various construction projects, including houses, airports, railway stations and so on. Will he keep the promise? We will find out soon.
Let's now take a look at the EUR/USD technical picture on the 4H time frame. The market is currently trading just below the weekly pivot at the level of 1.0481, below the technical resistance at the level of 1.0505 and below the golden trend line resistance. Only a clear, impulsive violation of this zone would change the outlook to more bullish, otherwise bears are in full control over this market. The next support is seen at the level of 1.0363.
