FX.co ★ Global macro overview for 18/04/2017

Global macro overview for 18/04/2017:

The Federal Reserve Bank of New York has released the Empire State Manufacturing Index data that were worse than market expectations. A closely watched gauge of New York area manufacturing weakened more than expected in April, from 16.4 points last month to 5.2 points in the reported month (the expectations were at the level of 15.2 points). Nevertheless, anything above zero indicates expansion in the state's manufacturing sector and April was the sixth consecutive positive reading in the index. The biggest drop for the reported month was logged in shipments and new orders. The prices-paid index improved, perhaps signaling rising inflationary pressures in the economy.

Let's now take a look at the US Dollar index technical picture at the H4 timeframe. The pattern of a Double Bottom can be noticed at the level of 100.00, but the bullish camp is still not strong enough to break out above the level of 100.61 despite the oversold market conditions. It looks like the sideway price action will continue until one of the important levels is violated. Please mind the gap, again.