Trade ideas thread – European session 6 April 2021

Daily thread to exchange ideas and to share your thoughts

After the cash market hit record highs yesterday, US futures are pointing lower to start the day with S&P 500 futures seen down 0.2%. Even though Treasury yields are on the retreat as well, equities are reflecting a more tepid mood today after running hot yesterday.

The dollar is keeping steadier as such, after failing to take heart in the more upbeat US economic data yesterday – in which the ISM services report sizzled.

EUR/USD is keeping just above 1.1800 as buyers seize near-term control but there is still a lot of work to do in order to convince of a turnaround in the downtrend.

AUD/USD is little changed following the RBA decision earlier, but is keeping afloat the head-and-shoulders neckline below 0.7600 at the very least. Buyers will need to push through the 30 March high @ 0.7664 to establish further upside momentum.

USD/JPY is holding above 110.00 after the drop yesterday was defended by the 200-hour moving average and the 38.2 retracement level of the recent swing move higher.

The near-term bias is more neutral for the time being as price action sits in between both key hourly moving averages (seen @ 110.10 and 110.58).

Elsewhere, gold is keeping more resilient as buyers keep a bounce from the double-bottom near $1,676 to push to $1,730 levels today. Key short-term resistance remains at around $1,743-55 though and that is the upside region to watch in the week ahead.

Looking at the week ahead, the market will continue to extrapolate clues from risk sentiment and bond yields for the most part. Fed speakers are likely going to be the thing to watch again, with Powell slated to speak on Thursday on the global economy.

What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.

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