For the bulls, important resistances exist at 1.2266 derived from the May 25th latest high, also at 1.2350 derived from the January 6th yearly high, and finally at 1.2577 which is the 1.618 Fibonacci extension target.
For the bears, Important support lies at 1.2100 June 4th low, also at 1.1990 derived from the May 5th low, and at 1.1704 which is the bottom of 31st March 2021 of the last important downward move.
--------------------------------------------------------------------------------------------------------------------------------------
• Not a lot going on in this morning’s announcements from the EU. With no stats to draw attention through the morning, the ECB monetary policy decision and press conference will be the main event of the day across all markets.
• European stocks remained near record highs on Wednesday, with investors holding off on taking big bets ahead of a policy decision from the European Central Bank and a U.S. inflation reading later this week.
The pan-European STOXX 600 index closed 0.1% higher, but stayed just short of a record high of 455.66 hit in the previous session.
• German exports rose in April, prompted by increasing trade with the United States, suggesting a continued recovery in Europe's biggest economy.
Seasonally adjusted exports increased by 0.3% on the month after an upwardly revised rise of 1.3% in March, the Federal Statistics Office said on Wednesday.
• Euro zone bond yields have fallen sharply in recent weeks, on dovish commentary from ECB officials leading investors to bet that it is unlikely that the bank will slow its pandemic emergency bond purchases at its policy meeting on Thursday. Germany will raise 1.5 billion euros from the re-opening of a 30-year bond.
• At 06:45 (GMT) EU French Industrial Production m/m is due. It's a measure of the change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities.
• At 08:00 (GMT) EU Italian Industrial Production m/m will be announced. It's a leading indicator of economic health - production reacts quickly to ups and downs in the business cycle and is correlated with consumer conditions such as employment levels and earnings.
• At 11:45 (GMT) EU Monetary Policy Statement expected. It's the primary tool the ECB uses to communicate with investors about monetary policy. It contains the outcome of their decision on interest rates and commentary about the economic conditions that influenced their decision. Most importantly, it discusses the economic outlook and offers clues on the outcome of future decisions.
• At 12:30 (GMT) EU ECB Press Conference will take place. The press conference is about an hour long and has 2 parts - first a prepared statement is read, then the conference is open to press questions. The questions often lead to unscripted answers that create heavy market volatility.
European indices yesterday:
• DAX: -0.38%
• EURO: +0.02%
• MIB: -0.26%
• CAC: +0.19%
Sources: Investing.com, forexfactory.com