Stocks, oil, and risk currencies gained on Tuesday as the formal go-ahead for US President-elect Joe Biden to begin his transition burnished a November already boosted by Covid-19 vaccines.
AUD/JPY may fall further
Information is not investment advice
AUD/JPY is in the downtrend since the start of the year. It was capped on the upside by all the three important moving averages on the D1 (200, 100, and 50 SMA). This week the pair broke below the February support line in the 73.40 area. Its attempts to get higher have failed, as sellers are quite active. The threat of the coronavirus is the biggest bearish driver for the AUD. The odds are that its impact will continue. At the moment of writing, the pair is testing support at 72.50 (February low, 61.8% Fibonacci of the 2019 advance). The break below this level will open the way down to 71.75 (October lows) and 71.35 (78.6% Fibo). Resistance lies at 73.25 and 73.80.
Trade idea for AUD/JPY
SELL 72.30; TP1 71.75; TP2 71.35; SL 72.55
EUR/USD fell below 1.1850 after reaching 1.1920 on Monday. The pair consolidated after the initial bearish move.
USD/CAD remains within a downtrend. As a result, selling the pair as it turns down from resistance is the best strategy. Support lies at 1.3125.
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US President-elect Joe Biden proposed a $1.9 trillion stimulus plan to jump-start the world's largest economy and accelerate its response to COVID-19