For the bulls, resistance levels exist at 67.98 March 5th high and at 74.61 which is the 1.618 Fibonacci extension target level of the last move.
For the bears, support levels exist at 62.62 where the 0.50 Fibonacci retracement level and MA50 coincide, also at 57.25 bottom of March 23rd and finally at 53.93 inside support level from January 13th top.
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• There are no news announcements expected on the EU area economic calendar in what is expected to be a quiet day in terms of reports.
• Asian stock markets followed Wall Street higher on Tuesday as inflation fears eased and investors regained an appetite for risk.
The Shanghai Composite Index rose 1.6% to 3,553.12 while the Nikkei 225 in Tokyo gained 0.6% to 28,534.27. The Hang Seng in Hong Kong advanced 1.2% to 28,764.21.
European stocks closed flat on Tuesday, as a billion-dollar German property deal and a rally in technology shares were offset by losses in major mining stocks due to concerns over Chinese markets.The pan-European STOXX 600 index ended largely unchanged at 445.20 points, after hitting a record high of 447.15 earlier in the day.
Germany's DAX rose 0.2%, having hit a record high earlier in the day on news that Europe's largest residential property group Vonovia SE agreed to take over its rival Deutsche Wohnen (OTC:DTCWY) for about 18 billion euros ($22 billion).
• Germany's economy contracted more than expected in the first quarter amid coronavirus lockdown measures, according to statistics released Tuesday, but a leading indicator showed that businesses' optimism is rising as the pace of vaccinations increases.
The Federal Statistical Office said that the 2021 first quarter gross domestic product in Germany, Europe's largest economy, dropped by 1.8% over the fourth quarter of 2020, according to figures adjusted for price, seasonal and calendar factors. The office's preliminary estimate had been a drop of 1.7%.
• German business morale brightened to hit a two-year high in May as COVID-19 curbs were eased and infections fell, heralding a swift summer recovery after the economy shrank more than expected in the first quarter.
With many firms reporting a build-up of supply bottlenecks, Tuesday's Ifo business climate index readout showed a jump to 99.2, up from April's revised 96.6 and beating the 98.2 forecast in a Reuters poll of analysts.
British retailers reported a return to normal for sales volumes this month after a flurry of demand in April when lockdown restrictions lifted for non-essential shops, the Confederation of British Industry said on Tuesday.
That measure fell to +18 in May from +20 in April, well below economists’ forecasts in a Reuters poll for it to rise to +30.
European indices yesterday:
• DAX: +0.18%
• EURO: +0.01%
• MIB: +0.01%
• CAC: -0.28%
Sources: Investing.com, forexfactory.com, miamiherald.com,usnews.com