Global macro overview for 18/07/2016:
On a slow day for economic news, today's monthly update of the US Housing Market Index will draw close attention in the wake of last week's upbeat numbers for the world's biggest economy. According to the National Association of Home Builders, the Housing Market Index increased to 60 points last month, a five-month high. For the last four months, the index remained unchanged at the level of 58, so the sentiment towards the home-building industry is pointing to stable and perhaps modestly stronger growth.
Let's now take a look at the EUR/USD technical picture on the 4H time frame, before the news release. The price is testing the short-term dashed trend line around the level of 1.1060 as the bear camp is trying to break out from the congestion zone and trade lower. The consecutive lower highs and lower lows sequence is supporting the bearish outlook for now. The key resistance is seen at the level of 1.1185 and the key support, at the level of 1.0911.
