21.03.201610:28 Forex Analysis & Reviews: Global macro overview for 21/03/2016

Global macro overview for 21/03/2016:

In the USA, the Thomson Reuters/University of Michigan preliminary Consumer Confidence Index dropped to 90.0 points in March, down 1.7 points from a month before. According to the report, this unexpected worsening in sentiment was caused by concerns of increasing petrol prices and mounting expenses. Moreover, another important fact is the employment situation and wages: the number of employed people is increasing steadily, but there is no chance for any increase in salaries and wages. In conclusion, the current situation is deteriorating compared to 2000 when the confidence index reached its all-time high at 112.

Let's now take a look at the US Dollar index technical picture at the daily time frame. The bears seem to be in complete control over this market as the price is trading below the 21.50 and the 100 daily moving average. Moreover, the price has recently broken below the important technical support at the level of 95.25 and currently the bears are testing this level from below. Any failure here would mean further price decrease towards the next support at the level of 94.05.