Trade ideas thread – European session 2 May 2023 | Forexlive

Get your rate hikes in, while you still can. That is perhaps the warning to major central banks before the Fed potentially announces a pause – not explicitly of course – to its tightening cycle this week. The RBA surprise has lifted the aussie, with AUD/USD running up from 0.6630 to 0.6700 on the day.

There is the 200-day moving average coming up at 0.6732 and that is a tempting level to fade the upside spike, though there is the Fed risk to consider in trading this week. EUR/AUD has also dropped to 1.6380 and is brushing against a trendline support from its 17 March and 3 April lows right at that level itself. That could see buyers look to make a stand for the pair this week.

Besides the notable action in the aussie, yen pairs are still the main ones as we continue the upside moves in USD/JPY and EUR/JPY respectively. The former has the 8 March high of 137.91 and offers at 138.00 to contest with next while the latter is not having much reference as it trades to its highest levels since 2008, now seen at 151.35 on the day.

Outside of that, we might very well have to wait on the Fed tomorrow for any wider repercussions in broader markets.

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