Global macro overview for 07/06/2016:
In her yesterday's speech at the World Affairs Council of Philadelphia's luncheon, Federal Reserve Chair Janet Yellen almost confirmed that the policymakers will not hike the short-term interest rates at the June or July meeting. This is quite an important change from the latest remarks when Fed officials were almost convinced that at least two interest rate hikes will happen by the end of 2016. The reason for this change in tone from hawkish to dovish is possibly the latest NFP figures that came way below the market expectations. In conclusion, the chances for the Fed's interest rate hike are minimal and in response to that, we should see the US Dollar weakening over the coming weeks.
Let's now take a look at the EUR/USD technical picture on the 4H time frame. The bulls have managed to push the prices just above the 50% Fibo at the level of 1.1357, and now the price looks to be capped there. Please notice that the lower low in the sequence has been made as well, so if the bulls are too weak to break out above the swing high at the level of 1.1615, we might see a bearish trend continuation soon.