Global macro overview for 23/12/2016:
At the end of this trading week a bunch of economic data from the US was released. US Final GDP posted an excellent gain of 3.5%, exceeding the forecast of 3.3%. On the other hand, durable goods orders reports were mixed. While core durable goods orders gained 0.5% versus the forecast of 0.2%, durable goods orders posted a sharp decline of 4.6%. Still it was better than the forecast of -4.9%. The job market data were sligthly worse than anticipated. Initial unemployment claims jumped to 275k while economists expected a rise of 255k. Still, the four-week average of jobless claims remains at low levels.
Let's now take a look at the US dollar index technical picture on the daily time frame. The bulls are still in control over this market as the price is trading near the recent swing highs around 103.00 level. Nevertheless, a corrective cycle is a must for this market, so when the techncial support at the level of 102.58 is clearly violated, the next support is expected to be seen at the level of 102.08. In case of a further breakout, the 38%Fibo at the level of 100.69 is the most probable target level.
