Trade ideas thread - European session 19 July 2021
Daily thread to exchange ideas and to share your thoughtsA more defensive risk posture is the name of the game as we get things going in the new week with the Canadian dollar in particular looking rather vulnerable.
USD/CAD looks poised to break above its 200-day moving average for the first time in a year, nearing 1.2650 currently with CAD/JPY also sinking to its lowest levels since April as it breaches support @ 87.10 to start European trading.
Oil is down 1% as OPEC+ formalises a deal so that isn't helping the loonie, though many houses are still calling for higher prices to follow in the months ahead.
I would expect risk sentiment to be the key driver this week, as there isn't much besides a likely non-event in the upcoming ECB meeting on Thursday.
Amid earnings season, equities may see some room for choppiness but after having kept close to and at around all-time highs in the past two week, there might be room for some profit taking and light pullback in the days ahead perhaps.
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.