EU Market Review 14th June 2021

DAX Futures registered new highs on June 7th 2021 reaching t0 15730.00 Despite the fact that the price action formed a doji which could indicate a reversal of the bullish trend, the market today inched to a new high at 15733.00 before returning to trade around the 15000 area. The price is also above the 50 Day moving average which in the past acted as support and may continue to do so. The Relative Strength Index (RSI) 14 period line is above the mid-50 level in bullish area and below the 70 level under the oversold territory, but it is flat indicating potential weakness.
For the bulls, important resistance at 15975.00 which is the 161.8% Fibonacci extension target, and at 16697.00 261.8% Fibonacci second extension target.
For the bears, important support at 15730 where the last high was registered, also at 15361.00 where the MA50 is standing now, and finally at 14806.00 which is the low of the last downward move derived from the bottom of May the 13th.

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• It’s a quiet day ahead on the Eurozone economic calendar. That leaves Euro Industrial Production results, UK CB Leading Index figures and commentary from the BOE Governor in mid-day.

• European stocks scaled a record high on Friday, buoyed by hopes that major central banks will remain accommodative despite signs of rising inflation, while a rally in miners boosted UK shares.
The pan-European STOXX 600 index rose 0.7% in its sixth straight session of gains and ended the week 1.1% higher, its best weekly performance since early May.

• Britain's recovery from the COVID-19 pandemic sped up in April as lockdown measures eased, with the fastest monthly growth since July leaving output a record 27.6% higher than a year earlier, when the virus was rampant and lockdown tightest.
Economic output rose by 2.3% month-on-month in April, marking the fastest growth since July, the ONS said, and slightly above the Reuters poll consensus for a 2.2% increase.
• UK Monthly production fell by 1.3% between March 2021 and April 2021 meaning output was 3.1% below its February 2020 level, the last month of "normal" trading conditions prior to the coronavirus (COVID-19) pandemic. The fall in production was driven by decreases of 15.0% in mining and quarrying, 0.3% in manufacturing, and 0.9% in water supply and sewerage

• At 09:00 (GMT) EU 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 13:00 (GMT) UK Bank of England (BOE) Governor Andrew Bailey is Due to speak about at an online conference hosted by the Association of Treasurers. Audience questions expected.

• At 13:30 (GMT) UK The Conference Board (CB) Leading Index figures are expected. It's the primary measure of the monthly Change in the level of a composite index based on 7 economic indicators.

European indices Friday:

• DAX: +0.78%
• EURO: +0.75%
• MIB: +0.31%
• CAC: +0.83%

Sources: Investing.com, forexfactory.com, reuters.com