Trade ideas thread – European session 19 November 2021

Daily thread to exchange ideas and to share your thoughts

The dollar is keeping steadier so far today and though we have seen gains pull back in the past two days, the greenback isn’t really being challenged all too much in the big picture.

EUR/USD is toying around with its 100-hour moving average @ 1.1357 so at least buyers are attempting to stop the bleeding though I’d be more convinced if price can get above 1.1400 to at least establish a base after the drop since last week.

Meanwhile, USD/JPY is continuing to keep above 114.00 and that reaffirms that buyers are still poised to try and search for more upside despite numerous failed attempts since October in establishing the next leg higher; 115.00 is key in that regard.

I still think yen pairs are a solid bet in the long run but amid the frothy level in equities and fears of a potential pullback/correction, there is no rush to get into that.

Any sharp retracement in that regard will also present a good opportunity for dip buyers for stocks to come back into the picture as equities sentiment isn’t likely to be harmed all too much despite central bank tightening prospects.

It’s all about portfolio reshuffling if the global economy does pick up rather significantly next year but if not, rate hikes aren’t going to be a mainstay if inflation pressures are not as persistent as one might think.

Besides that, oil is one that continues to be on my watch and though prices are stabilising around $77-79 for now, I still reckon we could be due a flush (perhaps on SPR headlines) before the next leg higher comes along.

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