Global macro overview for 01/11/2016:
The eurozone flash GDP data for the third quarter revealed steady growth. The preliminary gross domestic product increased a seasonally adjusted 0.3% in the third quarter in line with market expectations and at the same rate as in the second quarter. On the other hand, core inflation decreased in October, reinforcing expectations that the European Central Bank will negotiate to extend its asset-buying program in December. Consumer prices advanced 0.5% year-on-year in October and energy prices were 0.9% lower in October than a year ago (compared to 3.0% down in September). In conclusion, the GDP is growing at a rather slow and steady pace and inflation still remains below the ECB target level of 2%. So the extension of the QE in December by ECB is getting more likely.
Let's now take a look at the EUR/USD technical picture at 4H time frame. The corrective rally continues as the market is trying to test the important resistance at the level of 1.1040. Nevertheless, this rally looks only corrective as the larger time frame trend is still bearish. The support now is seen at the level of 1.0992.
