Trade ideas thread - European session 9 April 2021

Author: Justin Low | Category: News

Daily thread to exchange ideas and to share your thoughts

The dollar is holding a slight advance to start the day after a weaker showing yesterday, with Treasury yields keeping off lows for now. 10-year yields are at 1.637%, moving away from a low of 1.619% earlier in the day.

There is some semblance of a soft bottom close to 1.60% so that might keep the dollar somewhat supported but there are other technical factors to consider as well.

EUR/USD managed a break above its 200-day moving average and 1.1900 yesterday, although we are seeing price creep back towards the figure level now.

The pound is staying pressured as EUR/GBP continues its upside run after breaking to its highest levels since 26 February yesterday. Technically, there is a clear path towards 0.8700 next if buyers can hold the break above 0.8645.

Elsewhere, AUD/USD continues to be trapped between 0.7600 and resistance closer to 0.7656-64 for the most part this week as the push and pull continues.

Gold produced a modest rebound to just above $1,750 but is approaching a critical juncture now as it runs into the 18 March high @ $1,755.57. A break above that will validate the double-bottom pattern with a potential to run towards the 100-day moving average @ $1,809 on a break above the resistance level above.

As things stand, the key market focus remains largely on risk sentiment and yields. As long as the latter continues to see some signs of stalling and not running quickly back towards 1.75%, equities should continue to take comfort in that going into next week.

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

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