Global macro overview for 30/01/2017:
The economic calendar will be full of market moving events in the nearest days. In a series of regular data from the economies (Eurozone CPI at 10:00 am GMT on Tuesday, indicators of the condition of the industry PMI / ISM at 03:00 pm GMT on Wednesday, the labor market in the US at 01:30 pm GMT on Friday) weaves the FED on Wednesday at 07:00 pm GMT. Although the US FED is not widely expected to raise the interest rates this time, it still can sustain the hawkish rhetoric of the recent policy statement, which will temporarily strengthen the US Dollar (3 rate hikes are on agenda in 2017). The likelihood is strong that the regulator will raise rates before June 2017. On the other hand, maintaining the hawkish rhetoric may increase expectations that the May meeting will be the strongest possibility for a rate hike before June.
Let's now take a look at the EUR/USD techncial picture before the series of important data will be released. The choppy and ovelapping price action from the low at the level of 1.0304 to the recent top at the level of 1.0722 suggests it is only a corrective bounce and not a start of a new trend. Moreover, the increasing bearish divergence between the price and the momentum oscillator supports the view. The next support is seen at the level of 1.0658 and the next resistnace is seen at the level of 1.0722.
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