Global macro overview for 29/12/2016:
The pending home sales report is an advanced read of trends in the US housing market that tracks activity of purchasing existing single-family homes. According to the latest data released yesterday, the US pending home sales dropped by 2.5% to seasonally adjusted 107.3 in November, following the preceding month's rise of 0.1% to 110.0 points. Meanwhile global investors anticipated a slight acceleration of 0.5% during the reported period. The sales eased to the lowest level since January 2016. Larry Yun, the Chief Economist at the National Association of Realtors, the main reasons behind the drop are a sharp rise in mortgage rates and lack of supply on the housing market. In conclusion, the US housing market data was weak, but it may be a seasonal factor that will improve during the spring next year.
Let's now take a look at the EUR/USD technical picture on the 4H time frame. Bulls have managed to bounce from the technical support at the level of 1.0363 area and now are back to test the weekly pivot again. This slow and steady price action suggest more sideways moves until the end of the 2016. The larger time frame trend remais bearish.
