Monday Market Snapshot
WTI Crude Oil
It has been a choppy and somewhat bearish day so far for risk assets, with the Brexit talks making headlines yet again. European assets are under pressure, since the chances of a deal are fading, while there seems no progress in the EU-Italy debate either.
Equities in Europe are down significantly, lagging the other key markets, but the Euro and the Pound are behaving the weakest, with the common currency hitting a new 16-month low against the Dollar, and the GBP/USD getting close to 1.28 yet again.
EUR/USD, 4-Hour Chart Analysis
The break below 1.13 in the EUR/USD that we have been anticipating could be a key move in forex markets, especially if it’s followed by a quick move towards the 1.10 level. For now, a failed breakdown is still a possibility here, but given the strong broader downtrend, odds favor further new lows in the pair in the coming weeks, together with new highs in the Dollar Index, which also rallied to its highest level since mid-2017 today in early trading.
The next major support zone is found near 1.1125 in the most traded forex pair, while resistance is still ahead near 1.1440 and 1.15.
Dow 30 Futures, 4-Hour Chart Analysis
US stock futures are also pointing slightly lower after Friday’s selloff, but the pre-market losses are muted, and the resilience of the major indices could point to, at least, an initial rally after the opening bell. Today, trading volumes could be lower-than-average on Wall Street,