12.05.201710:55 Forex Analysis & Reviews: Global macro overview for 12/05/2017

Global macro overview for 12/05/2017:

There is no reason to worry about the condition of the US economy. In particular, the labor market remains healthy. A weekly feed of information from this sphere of the economy like Unemployment Claims supported the overall expectations. The number of unemployed people in the US came in at 236k, which was below expectations of 245k and below the last week number of 238k. Moreover, since the end of December 2016, the number of people applying for unemployment benefits has dropped to 1.9 million, whish is a great improvement. In conclusion, the job market just gave the FED another reason to justify the interest rate hike in June 2017.

Let's now take a look at the US Dollar Index technical picture on the H4 timeframe. Finally, one of the remaining gaps was filled after the market rallied to the level of 99.89. The other gap between the levels of 100.87 - 101.43 has not filled yet (or only partially filled), so the bias remains bullish. The current market conditions are overbought, so a corrective pullback is expected.The next technical resistance is seen at the level of 100.04 and the immediate support is seen at the level of 99.36.