Is the EUR/USD About to Reclaim 1.0800?
Indices from Asia:
- The ASX 200 index in Australia increased by 5.8 points (0.08%) to 7,352.60.
- The Nikkei 225 index in Japan has increased 7.74 points (0.03%) and now trades at 27,521.46.
- The Hang Seng index in Hong Kong has climbed by 167.35 points (0.81%) and is now trading at 20,887.16.
- The China A50 Index has climbed by 128.93 points (0.96%) and is now trading at 13,530.69.
Europe and the United Kingdom:
- The FTSE 100 futures in the United Kingdom are now up 32 points (0.4%), and the cash market is expected to open at 8,036.36.
- Euro STOXX 50 futures are now up 19 points (0.44%), and the cash market is expected to open at 4,293.92 points.
- The DAX futures in Germany are now up 71 points (0.46%), and the cash market is expected to start at 15,553.00.
United States Futures:
- DJI futures are now -5 points (-0.01%) lower.
- Futures for the S& P 500 are now down 0 points (0%).
- Futures on the Nasdaq 100 are now up 9.75 points (0.08%).
- Due to public holidays in the United States and Canada, trading volumes are likely to be lower after lunch.
- North Korea launched two additional ballistic missiles off its east coast, raising geopolitical tensions.
- The PBOC maintained its LPR (prime loan rate) at 3.65%.
- The US dollar gave up most of its weekly gains on Friday ahead of the three-day weekend, forming a bullish hammer on the EUR/USD and gold daily charts.
- There might be some mean reversion (against the US dollar) ahead of the FOMC minutes on Wednesday.
- In copper futures, a bullish engulfing week they emerged, indicating that a significant swing bottom has occurred just below $4.00.
- Oil prices and US equities fell on Friday as export prices jumped 0.8% m/m - well above the -0.2% predicted. German producer prices are in focus at 07:00 GMT, even though no top-tier economic data is due for today.
EUR/USD daily chart
The euro attempted (but failed) to finish below the 'pandemic low' on Friday, instead ending the day with a bullish hammer candle. It also closed above the 50-day EMA and has remained above it during the Asian session. Given that the US is on a federal holiday and data is weak, we see the possibility for range trading, which means bulls may be tempted to enter around the range lows and see if they can re-enter the 1.800 zone.
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