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/NZD: time for a correction
Information is not investment advice
AUD/NZD met the resistance of the 50-week MA in the 1.0700 area. A bit higher there are more resistance levels (100- and 200-week MAs at 1.0750).
The advance of the pair during the recent month was very rapid, and now it became overbought. The pair returned below the 200-day MA and will likely survive a deeper correction. As long as NZD/USD remain below the weekly pivot at 1.0660, the short-term picture will remain bearish. The target levels lie around 1.0500.
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.
U.S. stocks are set to open lower later, on a combination of the pandemic news and the downbeat news from Tech’s Old Guard late on Thursday.
Oil fell below $52.00 because investors expect a weaker oil demand amid rising Covid-19 infections and new lockdowns.
Asian equity markets traded cautiously after the mixed lead from Wall St where most indices stalled at record levels