Trade ideas thread - European session 25 January 2021
Daily thread to exchange ideas and to share your thoughtsBrand new week, same old story. As the key focus stays on the FOMC meeting this week, we are likely to get a reminder that the Fed remains the key driver of what is happening in the market to kick start the new year.
On the balance of things, that will keep the risk party flowing and the dollar tilted lower. However, the moves are not likely to be as impactful and straightforward as we saw towards November and December trading last year.
The greenback finds itself on the back foot again today with risk trades coming back into favour after the long weekend. US futures are pointing higher and that is underpinning commodity currencies ahead of European morning trade.
NZD/USD and NZD/JPY were defended by their key hourly moving averages on Friday and are keeping a modest bounce again to try and retest the highs last week.
Meanwhile, AUD/USD and AUD/JPY are also moving back above their own key hourly moving averages as we look to get things going in the session ahead.
Elsewhere, GBP/USD is looking to try and keep a break back above 1.3700 again while EUR/USD stays elevated around 1.2180 in search of a push towards 1.2200.
Looking at precious metals, gold and silver remain in a tricky spot as well with real yields having pushed higher towards the end of last week.
Gold continues to hold above its 200-day moving average @ $1,847.81 for now and that is the key technical level to watch - alongside the key trendline support closer to $1,830 - in trading this week in case sellers push their agenda further.
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