EU Market Review 4th June 2021

by Elina Nikolova

Easyjet PLC has been recovering from 2nd November 2020 where it bottomed and it has been in an uptrend since then. The price remained above the valid uptrend line until yesterday, when it broke below it in a dramatic fashion. The price is now trading at 955.40 headed towards the 38.2% Fibonacci retracement level of the last upward move that started on 28th January. The RSI is below the mid-50 level in bearish territory, but its still above the low 30 oversold level which shows there is still potential it might drop further.
For the bulls, important resistance points exist at 1018.75 derived from the May 7th top, and also at the Inside resistance from October 25th 2019 at 1176.10 level.
For the bears, important support points exist at 940.65 from the bottom of May 20th, also at 910.81 from the bottom of April 13th and finally at 883.83 from the bottom of March 24th which also coincides with the 50% Fibonacci retracement level.

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• It’s a relatively quiet day ahead on the economic data front. Eurozone retail sales figures for April are due out along with construction PMI figures for Germany. Expect the Eurozone’s retail sales figure to have a greater impact on the EUR.

• European stocks pared losses on Thursday as upbeat eurozone business growth data and strong U.S. jobs data lifted sentiment on a dull day of trading, while rating actions and ex-dividend trading knocked UK shares lower.
The pan-European STOXX 600 index was down 0.1% after falling as much as 0.8% earlier in the session. The automobiles & auto parts and healthcare sectors gained, while miners fell the most.

• Activity across Germany's service sector return to growth in May after stagnating at the start of the second quarter, latest PMI® data showed.
The headline seasonally adjusted Business Activity Index moved back above the 50.0 no-change threshold in May, rising from 49.9 in April to 52.8. Activity has now risen in two of the past three months, though rates of growth have so far been below the peak seen after the first COVID-19 wave.

• A resurgent services economy helped to drive private sector growth higher during May. After accounting for seasonal factors, the IHS Markit Eurozone PMI® Composite Output Index recorded 57.1, up from 53.8 in April. Not only did May mark a third successive month of expansion, but the best recorded since February 2018.

• At 08:30 (GMT) UK Construction Purchasing Managers Index (PMI) coming out. This is a survey of about 150 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.

• At 09:00 (GMT) EU Retail Sales m/m results are expected. This report measures the change in the total value of inflation-adjusted sales at the retail level.

• At 11:00 (GMT) EU ECB President Christine Lagarde is due to participate in a panel discussion titled "Central banks and climate change: how to manage expectations, balance actions and communication and contribute to coordinate with other important actors?" at the Green Swan 2021 Global Virtual Conference.

• All Day - G7 Meetings taking place. While it's not an institution, the G7 is an influential global policy-making body operating at the highest level, and their initiatives and policies can have a substantial impact on currency markets.

European indices yesterday:

• DAX: +0.19%
• EURO: -0.23%
• MIB: +0.29%
• CAC: -0.21%

Sources: Investing.com, forexfactory.com, fxstreet.com