For the bulls, a penetration and close above 4.08 price at the 0.618 Fibonacci retracement level may signal a further rally towards the yearly high of 4.95. Other important Resistance levels observed at 4.29 derived from a the 7th top and 4.95 yearly high of January 28th 2021.
For the bears, a penetration and close below the 4.08 price at 0.50 Fibonacci retracement level which is currently providing support, may signal a sell-off. Other important support levels observed at 3.716 inside support formed from a March 16th top and also at 3.20 low of February 23rd 2021.
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• Important announcements await to be published ahead on the EU economic calendar. News include UK Retail Sales, Flash Manufacturing PMIs from EU’s major contributors, as well as a Press Conference at which ECB president Lagarde will speak.
• European stocks rose on Thursday after one of the worst selloffs this year as strong earnings and merger talks in the chip sector helped investors look past inflation worries.
The pan-European STOXX 600 index rose 1.3% after suffering a 1.5% loss in the previous session. Tech stocks gained 2.7% to lead sectoral gains.
• The major Asia-Pacific stock indexes finished mixed on Thursday with Japan and Australia bucking the global down trend. Japanese shares inched higher as chip gains offset losses in cyclicals. Aussie stocks were boosted by a recovery in the financial and tech sectors.
In Japan, the Nikkei 225 Index settled at 28098.25, up 53.80 or +0.19%. Hong Kong’s Hang Seng finished at 28450.29, down 143.52 or -0.50%. In China, the benchmark Shanghai Index settled at 3506.94, down 4.02 or -0.11%. Australia’s S&P/ASX 200 finished at 7019.60, up 87.90 or +1.27%.
• German producer prices rose by 5.2% year-on-year in April, the biggest increase in nearly a decade, data showed on Thursday, in a further sign that supply bottlenecks are leading to increased inflation pressure in Europe's largest economy.
• British manufacturers reported the fastest growth in orders since December 2017 in May but fear supply-chain bottlenecks will cause their costs to rise sharply, according to a survey which adds to signs of a rebound for factories. The Confederation of British Industry's industrial orders balance rose to +17 from -8 in April.
• 06:00 (GMT) UK Retail Sales figures are due. This indicator measures the change in the total value of inflation-adjusted sales at the retail level
• 07:30 (GMT) EU German Flash Manufacturing PMI is also due. This is a survey of about 800 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.
• 08:30 (GMT) UK Flash Manufacturing PMI result to be announced. It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy.
• 11:00 ECB’s President Lagarde is due to participate in a press conference following the Eurogroup Meetings, in Lisbon. Eurogroup meetings are and attended by the Eurogroup President, Finance Ministers from euro area member states, the Commissioner for economic and monetary affairs, and the President of the European Central Bank. The Eurogroup coordinates economic policies of the 19 euro area member states, and their initiatives and decisions can have a widespread effect on the Eurozone's economic health
European indices yesterday:
• DAX: +1.70%
• EURO: +1.60%
• MIB: +0.88%
• CAC: +1.29%
Sources: Investing.com, forexfactory.com. fxempire.com