EU Market Review 7th June 2021

The GBPUSD was in an upward trend confirmed by the tentative uptrend line formed from the 12th April bottom at 1.3667 . On 1st June the price action attempted to penetrate the previous high of 1.4242 of 24th February. The price traded as high as 1.4247 but failed to close above that level and has been dropping since then. The price is still above the 50 Day moving average which coincides with the tentative uptrend line. The MACD is above the zero line, with the signal MACD crossed below the MACD line showing weakness, even if it is still in positive territory.
For the bulls, important resistance levels exist at 1.4245 area of the last high of June 1st, also at 1.4432 formed from a 2018 top, and finally at 1.4598 where the 161.8% Fibonacci extension target is.
For the bears, important support exists at 1.4024 where the 61.8% Fibonacci retracement level is, also at 1.3957 at the 50% Fibonacci retracement level and finally at 1.3672 where the low of April 12th was registered.

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• It’s a quiet day ahead on the economic data front. Germany Factory Orders are due, along with EU Sentix Investor Confidence and the UK Halifax House Price Index (HPI). With the ECB in action later in the week, expect increased sensitivity to any central bank comments.

• European stocks ended at a record high on Friday as weak U.S. payrolls data pointed to lower chances of early policy tightening, while optimism over a euro zone economic recovery buoyed most sectors.
The pan-European STOXX 600 index rose 0.4% to a new closing high of 452.57, having earlier hit an all-time high of 452.71. It added 0.8% for the week.

• In April 2021, the seasonally adjusted volume of retail trade fell by 3.1% in both the euro area and in the EU, compared with March 2021, according to estimates from Eurostat, the statistical office of the European Union.
In March 2021, the retail trade volume increased by 3.3% in the euro area and by 3.2% in the EU.

• The Group of Seven rich nations struck a landmark deal on Saturday to close cross-border tax loopholes used by some of the world's biggest companies.

• At 06:00 (GMT) EU Germany Factory Orders m/m coming out. It's a leading indicator of production - rising purchase orders signal that manufacturers will increase activity as they work to fill the orders.

• At 07:30 (GMT) UK Halifax House Price Index (HPI)results are expected. It's a leading indicator of the housing industry's health because rising house prices attract investors and spur industry activity.

• At 08:30 (GMT) EU Sentix Investor Confidence is to be released. This is a Survey of about 2,800 investors and analysts which asks respondents to rate the relative 6-month economic outlook for the Eurozone.

European indices Friday:

• DAX: +0.39%
• EURO: +0.25%
• MIB: +0.46%
• CAC: +0.12%

Sources: Investing.com, forexfactory.com,reuters.com