With the price closing above the tentative downtrend line yesterday, there is potential for a further increase in the price. Resistance levels at 28.40 price that lies on the 1.618 Fibonacci extension level, at 30.09 derived from February’s all time high and at 31.24 which is the 2.618 Fibonacci extension level.
If the price returns below the trendline, there is a possibility for the trend to reverse. For those who are in bearish mood, the support levels lie at 26.64 inside support level, at 24.02 derived from the March 31st low and at 21.83 double bottom completed on November 30th 2020.
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• It’s a busy day on the Eurozone economic calendar, with stats coming from the UK and the EU. UK’s Unemployment rate will keep investors focused, followed by the Flash Employment Change and the Flash GDP of the European Union.
• European stocks ended flat on Monday as underwhelming Chinese data and caution over the spread of a COVID-19 variant outweighed optimism on the reopening of the British economy, while Swedish “Kinnevik” surged and was the top performer.
• Asian shares were on the rise on Tuesday morning, shrugging off worries about an increase in regional coronavirus infections and a subdued session on Wall Street, while inflation jitters helped push gold prices to three-month highs. Japan’s Nikkei rose as much as 2.2% on solid earnings reports and bargain hunting.
• The European Commission wants to propose in 2023 a more unified way of taxing companies in the European Union, hoping that such rules, which have failed to win support in the past, will stand a better chance if they follow global OECD solutions expected this year. The Organisation for Economic Cooperation and Development (OECD) is to agree in June on global rules on where to tax large multinational corporations like Google (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Facebook (NASDAQ:FB), Apple (NASDAQ:AAPL) or Microsoft (NASDAQ:MSFT) and at what effective minimum rate.
• 09:00 (GMT) UK Unemployment Rate results will come out. The number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labour-market conditions.
• 11:00 (GMT) EU Flash Employment Change is due to be announced. This is a measure of the change in the number of employed people.
• 11:00 (GMT) EU Flash Trade Balance will be publicised. This is the change in the inflation-adjusted value of all goods and services produced by the economy.
European indices yesterday:
• DAX: -0.13%
• EURO: -0.26%
• MIB: +0.39%
• CAC: -0.28%
Sources: Investing.com, forexfactory.com