The Relative Strength Index is below the mid-50 level in bearish area and right on the 30 level ready to enter into oversold area pointing downwards indicating bearish tendency. The price is also trading below both the 50 Day and 100 Day Moving Averages (MA50, MA100).
For the bulls, important resistance levels exist at 1800 area where the MA100 stands now and coincides with the 50% Fibo retracement level, also at 1855.00 level derived from the inside resistance bottom of June 4th , and finally at 1916.00 area of the most recent top derived from June 1st.
For the bears, support levels exist at at 1755.00 level derived from 18th of March inside swing support top, also at 1676.00 where the 8th of March double bottom resides, and finally at 1644.00 level from the inside swing support top from March 26th 2020.
It’s a very busy day on the EU Economic Calendar today with stats from the Eurozone and the UK. Stats will include UK Final GDP q/q,
• Stock markets in Europe closed with gains after the latest economic data releases showed that the consumer confidence in the Eurozone reached a 21-year high in June. According to media reports, the European Union will approve a three-month extension of the food-related grace period under the Northern Ireland Protocol that the United Kingdom had requested. European Central Bank President Christine Lagarde revealed that 50% of all green bonds globally were issued in the euro.
• Consumer prices, harmonised to make them comparable with inflation data from other European Union countries, rose by 2.1% in June, down from 2.4% in May.
• French consumers are splurging on everything from clothes to cafes as the lifting of coronavirus restrictions boosts confidence to pre-pandemic levels and unemployment concerns subside, data showed on Tuesday.
The finance ministry said that payment card data showed spending was up 18% in the third week of June from the same period of 2019 with little sign of easing in the weeks after coronavirus restrictions were relaxed.
• Figures from the BoE published on Tuesday showed consumer borrowing rose in May for the first time since August - albeit modestly - as restrictions lifted and consumers bought cars with dealership finance deals and took out more personal loans.
Unsecured lending rose by a net 280 million pounds (€325.76 million) from April. Borrowing on credit cards fell.
Important Daily Events:
• At 06:00 (GMT) UK Final GDP q/q is due. This indicator measures the change in the inflation-adjusted value of all goods and services produced by the economy.
• At 07:55 (GMT) EU German Unemployment Change is expected . This indicator is measuring the change in the number of unemployed people during the previous month.
• At 09:00 (GMT) EU CPI Flash Estimate y/y is coming up. This indicator is measuring the change in the price of goods and services purchased by consumers.
• At 09:00 (GMT) EU Core CPI Flash Estimate y/y is coming up. This indicator is measuring the Change in the price of goods and services purchased by consumers, excluding food, energy, alcohol, and tobacco.
• At 11:00 (GMT) UK BOE Chief Economist Andy Haldane is due to speak about his experience at the Bank of England at an online event hosted by the Institute for Government. Audience questions expected.
European indices Yesterday :
• DAX: +0.88%
• EUROSTOXX 50: +0.43%
• FTSEMIB: +0.52%
• CAC40: +0.14%
Sources: Investing.com, forexfactory.com, breakingthenews.net