Trade ideas thread – European session 18 November 2021

Daily thread to exchange ideas and to share your thoughts

Dollar bulls are taking a breather and while the greenback held its advance against the loonie and aussie, gains from the past week are slowing elsewhere.

EUR/USD is keeping above 1.1300 but still sits in a rough spot technically, with sellers maintaining near-term control with the 100-hour MA seen only @ 1.1380.

USD/JPY at least saw sellers take back some near-term control as price action now sits in between the key hourly moving averages @ 113.83 and 114.23 after the plunge lower towards 114.00 in overnight trading.

Those are still the two key pairs to watch in gauging dollar sentiment as we look towards the latter stages of the week now.

Elsewhere, oil saw a notable drop yesterday and losses are continuing today with price down 0.8% to $77.70. While some are pointing to anxiety involving sale of strategic reserves, I reckon oil has shown exhaustion signs over the past few weeks and as pointed out previously, the retracement/correction would be good dip-buying opportunity.

I could see this running to $75 to $76 at least and any further drop beyond that would be good to scale into long positions in my view.

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