For the bulls, a penetration of the 1.4241 level and closing above it may trigger a rally. Important resistance points at 1.42410 yearly high, at 1.43455 formed from a previous 2018 double top and finally at 1.45850 at the Fibonacci 1.618 Extension level.
For the bears, if the price breaks below 1.4100, there might be a sell-off. Important resistance levels exist at 1.4000 which is a psychological support point, at 1.3915 where the 50 Day Moving Average lies and at 1.36686 which is the level where the double bottom continuation pattern was formed.
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• Economic data is back in focus today, with stats from France and EU’s largest economy, Germany. News include German Import Prices, French Preliminary GDP among others, and updates from the G& meeting taking place all day today.
• Asian stocks ended trading on a mixed note with the benchmark indexes at Tokyo, Hong Kong, and Wellington closing in the red. While Shanghai Composite gained moderately, S&P ASX 200 at Sydney closed almost flat. Chinese Shanghai Composite touched a three-month high and closed at 3608.85, at a gain of 0.43 percent in today's trade amidst a rising yuan, a general dollar weakness and an improving sentiment in Sino-U.S. relations. Japanese benchmark Nikkei 225 shed 0.33 percent in the day's trade when it closed at 28549.01 amidst continuing worries about corona virus cases and extension of restrictions. Hong Kong's Hang Seng Index lost 0.15 percent in the day's trade and settled at 29113.37.
• European shares closed at a record high on Thursday boosted by Airbus after the airplane manufacturer hiked its jet output targets, while German shares weakened after shares in pharmaceuticals maker Bayer were hit by a court ruling.
The pan-European STOXX 600 index rose 0.3% to 446.44 points, a record closing high.
• German consumer morale improved less than expected heading into June as shoppers remained cautious despite falling COVID-19 infections and an improving growth outlook for Europe's largest economy, a survey showed on Thursday.
The GfK institute said its consumer sentiment index, based on a survey of around 2,000 Germans, edged up to -7.0 from a revised -8.6 in the previous month. The reading missed a Reuters forecast for a bigger rise to -5.2.
• The Bank of England could raise interest rates as soon as the first half of next year if the job market bounces back faster than expected, but it is more likely to wait until later in 2022, BoE policymaker Gertjan Vlieghe said on Thursday.
Vlieghe said he broadly agreed with BoE forecasts earlier this month that point to growth of 7.25% this year, though he thought unemployment could prove higher than forecast after a government furlough programme ends on Sept. 30.
• At 06:00 (GMT) EU German Import Prices report is due. This measures the change in the price of imported goods purchased domestically. It is released monthly, about 26 days after the month ends.
• At 06:45 (GMT) EU French Preliminary GDP is due This monitors the change in the inflation-adjusted value of all goods and services produced by the economy. It is released quarterly, about 60 days after the quarter ends.
• Ongoing during the day - G7 Meetings will take place. G7 meetings are attended by finance ministers and central bankers from 7 industrialized nations - Canada, Italy, France, Germany, Japan, the UK, and the US.
The meetings are closed to the press but officials usually talk with reporters throughout the day, and a formal statement covering policy shifts and meeting objectives is usually released after the meetings have concluded. Both the comments and statement can create significant market volatility.
European indices yesterday:
• DAX: -0.28%
• EURO: +0.19%
• MIB: +1.12%
• CAC: +0.69%
Sources: Investing.com, forexfactory.com.nasdaq.com.