For the bulls, important resistance levels exist at the 50% Fibonacci retracement level at price 1.3955, also at the most recent top at 1.4250 from June 1st , and finally at 1.4345 derived from a January 2018 double top that still stands today.
For the bears, important support levels exist at 1.3800 78.6% Fibonacci retracement level , also at 1.3668 from the bottom of April 12th, and finally at 1.3305 which is the 161.8% Fibonacci extension target.
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• It’s a relatively quiet day ahead on the economic data front. Economic data from the Eurozone and the UK will draw interest in the day, including UK Public Sector Net Borrowing, UK CBI data and Eurostat Consumer Confidence figures.
• Major stock markets in Europe closed higher on Monday after European Central Bank (ECB) President Christine Lagarde noted the presence of inflation growth in the Eurozone due to an increased foreign demand for its goods and services.
The DAX closed 0.95% higher as Volkswagen rose by 3.59%. The FTSE 100 advanced by 0.65%. The CAC 40 grew by 0.51%.
• Governor of the Bank of Portugal Mario Centeno (pictured) stated on Monday that the European Central Bank's Pandemic Emergency Asset Purchase Programme (PEPP) is likely to go on until March next year.
Further, the official added that all analysis points to the rising inflation in the Euro area as being only temporary.
• The euro zone and the United States are "clearly in a different situation" when it comes the outlook for inflation, European Central Bank President Christine Lagarde said on Monday, playing down any impact from across the Atlantic.
Lagarde also repeated her message, delivered after the ECB's last policy meeting on June 10, that it was not yet time to allow interest rates to rise, so the central bank would maintain favourable financing conditions.
• At 06:00 (GMT) UK Public Sector Net Borrowing is due. This indicator measures the Difference in value between spending and income for public corporations, the central government, and local governments during the previous month .
• At 10:00 (GMT) UK Confederation of British Industry (CBI) data will be released. It's a Survey of about 550 manufacturers which asks respondents to rate the relative level of order volume expected during the next 3 months.
• At 14:00 (GMT) Eurostat EU Consumer Confidence will be announced. This report is a Survey of about 2,300 consumers in Eurozone countries which asks respondents to rate the relative level of past and future economic conditions, including personal financial situation, employment, inflation, and climate for major purchases.
European indices Yesterday:
• DAX: +0.95%
• EURO: +0.71%
• MIB: +0.71%
• CAC: +0.51%
Sources: Investing.com, forexfactory.com, fxempire.com, breakingthenews.net