For the bulls, important resistance exists at 6683.00 all-time high, also at 6800.00 which is the Fibonacci 261.8% extension target of the last downward move observed, and finally at the 423.6% Fibonacci extension target at price 7210.00 .
For the bears, important support exists at 6393.00 where the MA50 exists, also at 6138.00 where the MA100 coincides with the Bottom of the last move on May 13th , and finally at 5880.00 derived from a previous bottom on 25th March.
A busy economic calendar puts the EUR in focus. EUR stats include the German Ifo Business climate and the ECB Economic Bulletin. However, the Bank of England monetary policy decision will be the main event of the day.
• Major European stock markets closed mostly lower on Wednesday as rising inflation concerns overshadowed the data reports. The United Kingdom's private sector activity slowed its growth pace in June, while the Flash Composite Output Index declined compared to the previous month.
• The Flash Eurozone PMI Composite Output Index, which takes both, the services and the manufacturing business activity into account, stood at 59.2 in June, representing an increase of 2.1 index points compared to the previous month, according to a preliminary report published by IHS Markit on Wednesday. The reading surpassed market expectations and reached levels unseen since June 2006.
In June, the Flash Eurozone Manufacturing PMI came in at 63.1, unchanged from May, while the Flash Eurozone Services PMI Activity Index reached 58.0, hitting a 41-month high after rising by 2.8 index points from the previous month.
• The Flash PMI Composite Output Index for Germany rose points to 4.2 points reach a 123-month high of 60.4 in June, IHS Markit reported on Wednesday.
The upturn reflected an improvement in both sectors, with the Flash Services PMI Activity Index reaching 52.8. Flash Manufacturing Output Index and Flash Manufacturing PMI were at a two-month high, climbing to 65.1 and 64.4 respectively.
• The United Kingdom's private sector activity continued to expand in June, albeit at a slightly slower pace, the IHS Markit report released on Wednesday showed. The Flash Composite Output Index stood at 61.7, down from the prior month's record of 62.9.
• The Flash UK Services Business Activity Index read the same as the headline index, while the Flash Manufacturing Output Index slipped to 62.0. The Flash Manufacturing PMI was 64.2.
Important Daily Events:
• At 08:00 (GMT) EU German German Information and Forschung (ifo) Business Climate is due. This is a survey of about 9,000 businesses which asks respondents to rate the relative level of current business conditions and expectations for the next 6 months.
• At 11:00 (GMT) UK Asset Purchase Facility is coming up. MPC members vote on the total amount of money to create for the program. The individual votes are published 2 weeks later in the MPC Meeting Minutes.
• At 11:00 (GMT) UK Monetary Policy Summary will be released. It's among the primary tools the MPC uses to communicate with investors about monetary policy. It contains the outcome of their vote on interest rates and other policy measures, along with commentary about the economic conditions that influenced their votes. Most importantly, it discusses the economic outlook and offers clues on the outcome of future votes.
• At 11:00 (GMT) UK MPC Official Bank Rate Votes are also expected. The BOE's MPC meeting minutes contain the interest rate vote for each MPC member during the most recent meeting. The breakdown of votes provides insight into which members are changing their stance on interest rates and how close the committee is to enacting a rate change in the future.
• At 11:00 (GMT) UK Official Bank Rate is also due. MPC members vote on where to set the rate. The individual votes are published 2 weeks later in the MPC Meeting Minutes.
• At 23:01 (GMT) UK GfK Consumer Confidence will be released. MPC members vote on where to set the rate. This is a survey of about 2,000 consumers which asks respondents to rate the relative level of past and future economic conditions including personal financial situation, climate for major purchases, and overall economic situation.
European indices Yesterday:
• DAX: -1.15%
• EUROSTOXX 50: -1.14%
• FTSEMIB: -0.22%
• CAC40: -0.91%
Sources: Investing.com, forexfactory.com, breakingthenews.net