Important events today:

US – Bank Holiday.

It is a bank holiday in the United States and I expect quiet trading during the day. The dollar fell heavily against its major competitors last week – the dollar basket index (USDX) hit a six-month low and is one step away from the psychological 100 level, which will be the target for the near future. As the euro takes the main place in the dollar index, we can expect the European currency to strengthen to 1.10.

On the interbank in London the dollar Libor interest rates are decreasing, which indicates a lack of high demand for the American currency from the European bankers. The rally in the commodities market is also favorable for a stronger euro, as assets are historically correlated. Investors are actively buying industrial metals and energy carriers amid expectations of China’s economic growth. On this background it is advisable to use the decrease of the Euro quotes to the nearest support levels to open Buy positions relying on the uptrend continuation.

Recommendations: Buy 1.0800/1.0760 and TP 1.0889.