Trade ideas thread – European session 27 April 2021

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Daily thread to exchange ideas and to share your thoughts

The dollar is keeping just a touch higher ahead of European morning trade today as it holds the line after having fallen to test key support.

EUR/USD is still keeping below key trendline resistance @ 1.2116 and that is one of the telltale signs that the dollar is hanging on in there for the time being.

Adding to that is the Bloomberg dollar index (my preferred choice over the DXY) is also holding a test of its key trendline support for the year, as buyers are showing some mettle to kick start the final trading week of April so far.

Amid the post-BOC tilt, the loonie remains in a good spot and is likely to gain further traction in the weeks/months ahead. USD/CAD is down to 1.2400 as sellers start to eye the 18 March low @ 1.2365 next.

As much as there being talk about all the good news being priced in for equities, the Goldilocks scenario is still one that should keep things supportive though we’ll have to see how key event risks this week will shake things up.

There are concerns about frothiness but all things being equal, expect any major dips to be bought up even when it does take place in the days/weeks ahead.

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

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