Trade ideas thread – European session 26 March 2021

Daily thread to exchange ideas and to share your thoughts

Major currencies are leaning towards being more risk-on to start the day, with Asian equities rallying and US futures tilting higher as well.

WCRS 26-03

Treasuries continue to keep more sideways after a retreat from last week so that is adding to further calm in the market mood for the time being.

That said, the dollar still sits in a solid spot against certain major currencies with EUR/USD in particular holding a break below 1.1800 despite a light bounce today.

GBP/USD managed to claw its way back up to 1.3770 but is running into its 100-hour moving average and that is where sellers are keeping a defense for now.

USD/JPY is also looking perky in testing the highs for the year around 109.36 but further resistance is then seen at the June highs around 109.69-85 before the 110.00 level comes into consideration for buyers.

Elsewhere, AUD/USD is looking to try and push back above its 100-day moving average @ 0.7610 but there is some near-term resistance @ 0.7628 for the time being before the 100-hour moving average steps into play @ 0.7645.

Oil is also looking perky as price trades back higher by 1.8% at $59.60 with the Suez Canal disruption set to be prolonged into next week.

Despite the slightly better risk standing to start European trading, focus on month-end and quarter-end rebalancing could still complicate things in the day ahead.

As such, there might be more noise than actual clues for the market to take away from trading until we get to April.

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