The price is also above the 50 Day Moving Average (MA50) and the 100 Day Moving Average (MA100), both sloping upwards in a bullish stance. The RSI is in bullish territory above the mid-50 level sloping upwards, and just below the overbought level of 70.
For the bulls, important resistance points exist at the 161.8% Fibonacci extension target at 74.63, also at the 76.90 high of October 4th 2018, and finally at the 84.05 low of November 7th 2012 that acts as an inside swing resistance level.
For the bears, important support levels exist at the 70.00 psychological level, also at 67.98 inside swing support from the top of March 8th 2021 with the MA50 coinciding, and finally at 65.00 where the MA100 lies now.
It’s a very busy day on the EU Economic Calendar today with stats from the Eurozone and the UK. Stats will include among others UK Final GDP q/q, German Unemployment Change, EU CPI and Core CPI Flash Estimate y/y, as well as French and Italian Preliminary CPI’s.
• European shares ended lower on Wednesday as investors locked in gains after a five-month winning streak, with concerns over an eventual spike in inflation and the Delta variant of the coronavirus also pushing some money off the table.
The pan-European STOXX 600 closed 0.8% lower at 452.84 points but rose 1.4% in June, its fifth straight month of gains. The index is up 14.4% this year.
• The gross domestic product (GDP) of the United Kingdom contracted 1.6% in the first quarter of 2021 compared to the prior one, the country's Office for National Statistics (ONS) reported on Wednesday. On an annual basis, it was down 6.1%, while remaining 8.8% lower than the pre-pandemic levels.
• German unemployment fell further in June as more workers joined the labour market in light of a strong recovery in Europe's largest economy helped by falling coronavirus infections and an easing of containment measures, data showed on Wednesday.
The Labour Office said the number of people out of work fell by 38,000 in seasonally adjusted terms to 2.691 million. A Reuters poll had forecast a fall of 20,000.
• Euro zone inflation eased this month, levelling off for the summer months before an expected move well above the European Central Bank's target towards the autumn on higher commodity prices.
Inflation in the 19 countries sharing the euro slipped to 1.9% in June from 2.0% in May, in line with forecasts in a Reuters poll and right on the ECB's target of "below but close to 2%".
Core inflation, or prices excluding volatile food and energy costs, held steady in June as expected at 0.9% while a more narrow measure excluding alcohol and tobacco slipped to 0.9% from 1.0%.
Important Daily Events:
• At 06:00 (GMT) German Retail Sales (YoY) (May) is due. German Retail Sales measures the change in the total value of inflation-adjusted sales at the retail level, excluding automobiles and gas stations. It is the primary indicator of consumer spending, which accounts for the majority of economic activity.
• At 06:00 (GMT) German Retail Sales (MoM) (May) is also due. A higher than expected reading should be taken as positive/bullish for the EUR, while a lower than expected reading should be taken as negative/bearish for the EUR.
• At 07:55 (GMT) EU German Manufacturing PMI (Jun) is expected . The German Manufacturing Purchasing Managers' Index (PMI) measures the activity level of purchasing managers in the manufacturing sector. A reading above 50 indicates expansion in the sector; below indicates contraction.
• At 08:00 (GMT) EU Zone Manufacturing PMI (Jun) is coming up. Traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.
• At 09:00 (GMT) UK Manufacturing PMI (Jun) is expected. A higher than expected reading should be taken as positive/bullish for the GBP, while a lower than expected reading should be taken as negative/bearish for the GBP.
• At 09:00 (GMT) EU Zone Unemployment Rate (May) is due. The Unemployment Rate measures the percentage of the total work force that is unemployed and actively seeking employment during the previous month. The data tends to have a muted impact as there are several earlier indicators related to labor conditions in the euro zone.
European indices Yesterday :
• DAX: -1.02%
• EUROSTOXX 50: -1.05%
• FTSEMIB: -1.01%
• CAC40: -0.91%
Sources: Investing.com, forexfactory.com, breakingthenews.net