Trade ideas thread - European session 27 October 2020
Daily thread to exchange ideas and to share your thoughtsThe dollar is keeping slightly weaker as we get into European morning trade, but the trading ranges today are still relatively modest for the most part.
The moves so far are still within the realms of what we saw with price action yesterday, as the dollar posted slight gains but did little in terms of making any breakthroughs.
EUR/USD is sitting around 1.1830 with price action keeping in between its key hourly moving averages at 1.1792 and 1.1835 for the moment.
GBP/USD is seeing a similar narrative around 1.3020-40 as buyers defended the 1.3000 level and the 200-hour moving average since trading yesterday.
USD/CAD is also failing to keep a break above 1.3200 as the pair is gradually slipping towards its 200-hour moving average at 1.3167 for the time being.
Meanwhile, AUD/USD is still largely consolidating above 0.7100 as buyers keep above the key hourly moving averages but is seeing some resistance from the 38.2 retracement level of the October swing move lower @ 0.7158.
Elsewhere, gold is continuing to keep above its 100-day moving average but is seeing some resistance from its 100-hour moving average @ $1,909 currently, after having seen price action capped by its 200-hour moving average @ $1,906 yesterday.
Virus jitters resurfaced in trading yesterday and will continue to pose a threat to risk trades moving forward but given the risks associated to the US election next week, the market may lack any real conviction for now to go chasing extensive moves.
The only way I see the market moving this week is if investors decide to take a side and lean towards a particular outcome for the election. Otherwise, it may be tough to really read much into the moves as we are seeing so far to start the week.
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.