For the bulls, important resistance points exist at 18.50 derived from the top on July 1st, also at 18.94 derived from the top of February 23rd , and finally at 19.67 where the 200% Extension level of the last move can be seen now.
For the bears, important support points exist at 17.30 where the MA50 sits now, also at 16.76 where the MA100 is trending, and finally at 16.20 derived from the bottom of June 21st.
• It’s a particularly quiet day ahead on the economic calendar. There are no material stats to provide the European majors with direction on the day. However, the UK will provide stats on Construction Output, GDP, Industrial and Manufacturing production as well as possible comments from BOE Governor Andrew Bailey. On the EU monetary policy front, ECB President Lagarde is scheduled to speak later in the day too.
• Major European stock registered major losses at the closing bell on Thursday as the economic effects of the Delta coronavirus variant helped negative sentiment prevail in today's session.
The DAX lost 1.73% or 272 points at the close. The FTSE 100 tumbled 1.68% or 120 points. The CAC 40 sank 2.01% or 130 points.
• Germany's non-adjusted foreign trade surplus amounted to €12.3 billion in May, down from €15.5 recorded the month before, the data released by the country's Federal Statistical Office Destatis revealed on Thursday. In seasonally adjusted terms, the trade surplus figure came in at €12.6 billion.
Exports amounted to €109.4 billion, up 0.3% from the previous month and 36.4% compared to the same month a year ago. Meanwhile, imports rose 3.4% on a monthly basis and surged 32.6% annually to reach €97.1 billion.
Germany's imports from the European Union countries increased by 38.1% compared to May 2020, while exports to those countries soared 43.3% within the same time frame.
• The European Central Bank set a new inflation target on Thursday and carved out a major role in the fight against climate change, as Europe's most powerful financial institution embarked on the biggest overhaul in its 23-year history.
In the key conclusion of the review, the central bank of the 19 countries that share the euro set its inflation target at 2% in the medium term, ditching a previous formulation for "below but close to 2%", which had created the impression it worried more about price growth above the target than below it.
Important Daily Events:
• At 06:00 (GMT) UK GDP m/m is due. This indicator measures the change in the total value of all goods and services produced by the economy.
• At 06:00 (GMT) UK Goods Trade Balance is also due. This indicator measures the difference in value between imported and exported goods during the reported month.
• At 06:00 (GMT) UK Industrial Production m/m expected. This indicator measures the change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities.
• At 06:00 (GMT) UK Industrial Production m/m is also expected. This indicator measures the Change in the total inflation-adjusted value of output produced by manufacturers, excluding miners and utilities.
• At 10:00 (GMT) ECB President Christine Lagarde is due to participate in a panel discussion titled "Digitalisation, intangibles and potential growth in a post-COVID world" at the Global Forum on Productivity, in Venice.
• At 10:00 (GMT) BOE Governor Andrew Bailey is also due to participate in a panel discussion titled "Digitalisation, intangibles and potential growth in a post-COVID world" at the Global Forum on Productivity, in Venice.
European indices Yesterday :
• DAX: -1.73%
• EUROSTOXX 50: -2.13%
• FTSEMIB: -2.55%
• CAC40: -2.01%
Sources: Investing.com, forexfactory.com, fxempire.com, breakingthenews.net