Trade ideas thread – European session 28 October 2020


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Daily thread to exchange ideas and to share your thoughts

Major currencies are keeping more mixed to start the session, with the euro having been pushed lower since the latter stages of overnight trading amid fears of tighter virus restrictions in Germany and France later today.

WCRS 28-10

The aussie is leading gains with AUD/USD rising to test near-term resistance around 0.7158 as buyers look to try and break above last week’s high at that level.

Elsewhere, USD/JPY is staying pressured in a push towards 104.00 with daily support seen around 104.18 alongside the 21 September low seen at the figure level.

Treasury yields are continuing their retreat amid the softer start for risk trades this week, with 10-year yields slipping to 0.767% after testing its 200-day moving average last week.

GBP/USD is trading higher as buyers are trying to push above the 100-hour moving average, though near-term resistance around 1.3075-80 is still one to watch in keeping a lid on any upside movement later in the session.

The euro will be a key focus area in trading today ahead of imminent announcements by Germany and France on a shutdown in order to curb the virus spread.

Also, be mindful of the loonie as the Bank of Canada will be meeting as well later today.