EU Market Review 15th June 2021

The EURUSD was in an uptrend since March 31st. The price hit fresh 3-month highs at price 1.2266 by May 25th . This figure temporarily surpassed the previous 1.2244 top of February 25th , only to drop below 1.2200 without closing above the previous high. The price is now trading around 1.2125 area. The price temporarily traded below 1.2100 but bounced back above it as this level acted as a strong support. The 1.2100 level coincides with the 50 Day Moving Average (MA50), increasing the a strength of this support area. The MACD is trending in above the zero line in bullish territory, but the MACD Signal line is crossed below the MACD line and both are sloping downwards, indicating a weakness and a possible bearish tendency.
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 1.2040 where the MA100 lies coinciding with the 61,8% retracement level of the last downward move, and finally at at 1.1990 derived from the May 5th low.

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• European stocks advanced to start the week as investors looked ahead to the June meeting of the U.S. Federal Reserve. The pan-European Stoxx 600 gained 0.25% by the close, paring some of its earlier gains after closing last week at a record high. Oil and gas stocks climbed 2% to lead gains while autos fell 1.1%.

• Euro zone industrial production was stronger than expected in April, driven by a more than doubling of durable consumer goods output from a year earlier as economies steadily reopened after COVID-19 pandemic lockdowns, data showed on Monday.
The European Union's statistics office Eurostat said industrial output in the 19 countries sharing the euro rose 0.8% month-on-month for a 39.3% year-on-year surge.

• The European Union on Monday hired banks for a 10-year bond sale, the first to finance its recovery fund, its commissioner for budget and administration announced, a crucial step in financing the bloc's economic recovery from the coronavirus pandemic.
The deal is the start of up to 800 billion euros of debt issuance between now and 2026 that will back grants and loans to member states - an unprecedented act of fiscal solidarity on the EU's part that may transform it into a leading European borrower.
The bloc hired BNP Paribas, DZ Bank, HSBC, IMI-Intesa Sanpaolo and Morgan Stanley as joint lead managers for the debut deal, while Danske Bank and Santander will act as co-lead managers, according to the memo.

• At 06:00 (GMT) UK Unemployment Rate is due. It's a measure of the Percentage of total work force that is unemployed and actively seeking employment during the past 3 months.

• At 09:00 (GMT) EU Trade Balance figures come out. It's a statistic that is a measure of Difference in value between imported and exported goods and services during the reported month.

• At 12:15 (GMT) UK Bank of England (BOE) Governor Andrew Bailey is due to speak about the future growth of UK-based financial services at an online conference hosted by “TheCityUK”. Audience questions expected.

European indices Yesterday:

• DAX: -0.13%
• EURO: +0.14%
• MIB: +0.16%
• CAC: +0.24%

Sources: Investing.com, forexfactory.com, cnbc.com