Trade ideas thread – European session 3 May 2021

Daily thread to exchange ideas and to share your thoughts

The dollar held its ground at the end of April trading and pushed higher to cement some footing as we look towards May. Major currencies are little changed today but the yen is slightly weaker as inflation talk continues to heat up in the market.

10-year Treasury yields closed last week at 1.625% and bond sellers will be hoping to build on that ahead of the US non-farm payrolls report on Friday.

USD/JPY is running into resistance from the 61.8 retracement level of its April downswing @ 109.63 while CAD/JPY is now nearing its October 2018 highs @ 89.17-32.

A break of the latter may very well pave the way for a potential extension towards the September 2017 and January 2018 highs around 91.45-64 next.

Meanwhile, the failed upside break in EUR/USD now sees sellers seize back near-term control as they also push price back below the 100-day moving average @ 1.2051. Keep below that and buyers will find it tough to keep the April run going.

There is also near-term resistance from the key hourly moving averages @ 1.2069-87.

Elsewhere, Ethereum is having a great run as it breaks $3,000 and that is helping to lift general cryptocurrency sentiment with Bitcoin rising back above $58,000 as well.

London is out today so European trading may be more quiet, so I would expect technicals and risk sentiment (keep an eye on bonds too) to dominate proceedings.

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

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