Trade ideas thread - European session 4 August 2021

Author: Justin Low | Category: News

Daily thread to exchange ideas and to share your thoughts

The kiwi is the notable mover so far on the day, with the currency posting modest gains after a strong NZ labour market report helped to seal market expectations of a rate hike by the RBNZ later this month.

NZD/USD moved up to fresh highs in nearly a month, keeping just above the 38.2 retracement level of the recent downswing @ 0.7047 for the time being.

That will be a key spot to watch going into the daily close with further resistance then seen closer to the confluence of the key daily moving averages @ 0.7093-95, adding to offers closer to 0.7100 and the July high @ 0.7105.

USD/JPY is also a key pair to watch at the moment as price starts to test the 109.00 level, with a break there potentially aggravating more of the dollar's recent weakness.

Elsewhere, oil saw a drop below $70 overnight, which was sustained by the 50.0 retracement level of the recent upswing @ $69.64 before the daily close settled above the figure level. That said, the selling pressure isn't over just yet.

Risk sentiment and the bond market are still the two key drivers at the moment in my view, before we slowly turn our attention to the US non-farm payrolls on Friday.

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

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