Global macro overview for 17/06/2016:
The US consumer price index data was published yesterday and it slightly missed the expectations. According to the Labor Department, the CPI index advanced 0.2% in May after rising 0.4% in April.Moreover, on a yearly pace, CPI increased 1.0% after accelerating 1.1% in April. Nevertheless, the increase in housing and healthcare costs is still supporting inflation and this situation could lead the Federal Reserve to raise interest rates during the current year. In conclusion, the Fed is now nowhere near to its yearly inflation target at the level of 2% and a possibility of the immediate rate hike at the next Fed's meeting is rather low.
Let's now take a look at the EUR/USD technical picture in the daily time frame. The golden trend line is still providing the dynamic support for bulls as the market is trading inside the congestion zone between the 100 and 200 moving averages. To re-gain the control over the market, bears will have to break out below the important technical support at the level of 1.1098, making another lower low in the sequence.