FX.co ★ Global macro overview for 20/03/2017

Global macro overview for 20/03/2017:

Another good set of data from the U.S. economy (job market, construction, sentiment) had been released last week. The number of Americans who filed for unemployment insurance last week decreased to 241,000, a survey from the Labor Department revealed on Thursday, following the preceding week's 243,000 filings and missing the market analysts expectations of 245,000. The other good data were released from housing construction sector of the economy as it advanced 3% and was mainly driven by one-family house applications, whose growth hit a record since September 2007. This means, despite high mortgage costs and increasing real estate prices, the situation in the home-building industry remains positive, as the housing market index reached a 12-year high.

Let's now take a look at the EUR/USD technical picture at the H4 timeframe. The market is trading near the swing highs in overbought trading conditions. The recent intraday resistance at the level of 1.0782 might be a tough barrier to break out, but after the corrective dip, the bulls should try to test the swing high at the level of 1.0828 before the market reverse. Please notice the growing bearish divergence between the price and the momentum oscillator supports the bearish outlook.