Trade ideas thread - European session 4 May 2021
Daily thread to exchange ideas and to share your thoughtsThe dollar is holding modest gains across the board to start the day, recouping some of its overnight losses following a "softer" US ISM manufacturing report.
By "softer" I mean the headline reading missed on expectations but the details reflect more signs of extended lead times rather than a major tempering of demand.
In any case, the technicals continue to side with the greenback for now with EUR/USD keeping just below its 100-day moving average of 1.2051 after having failed to breach near-term resistance from the key hourly moving averages yesterday.
GBP/USD saw a similar move fail to hold above 1.3900 as price retreats back under the key hourly moving averages (now @ 1.3894-00) to 1.3870-80 currently.
USD/JPY is also picking back up to 109.30 from 109.00 after buyers somewhat defended the 100-hour moving average, now seen @ 109.02.
Elsewhere, USD/CAD is hovering close to 1.2300 again while CAD/JPY is still contesting a push of its October 2018 highs of 89.17-22 going into European trading.
With the market starting to hone in on inflation again, yen and franc pairs may be more interesting to watch in the weeks to follow - should data/risk be supportive.
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.