Global macro overview for 12/04/2017:
The Industrial Production data from the Eurozone declined in February by 0.3% and consumer sector underperforms as well. Market participants expected only a slight decrease in industrial production from 0.3% to 0.2% on a monthly basis, but the decline was deeper. Moreover, on yearly basis, the data missed the expectations of 1.9% by delivering only 1.2% increase. There was a sharp 4.7% decline in energy output for the month while non-durable consumer goods production also contracted on the month. In contrast, capital goods and intermediate goods output both increased for the month. In conclusion, the data was disappointing on a monthly basis, but the overall uptrend in this sector of the Eurozone economy is still supported, so this decline may be limited and may be viewed as a temporary dynamic.
Let's now take a look at the EUR/USD technical picture in the H4 timeframe. The price seems to be finally bouncing from the support at the level of 1.0569 and now it is trading back in the golden parallel channel zone. Nevertheless, the important technical resistance at the level of 1.0628 wasn't clearly violated yet, but the bounce from the oversold market conditions and growing multiple bullish divergences indicate a stronger rebound towards this level.
