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.
CAD/CHF has slumped
Information is not investment advice
The CAD has fallen versus the most major currencies after the Bank of Canada said that it considered an insurance rate cut. Have a look at the chart of CAD/CHF: the pair is testing daily moving averages. A close below 0.7490 on Friday will result in a bearish “engulfing” candlestick and open the way down to the 2018-2019 support line in the 0.7315/00 area. The decline below 0.7470 may trigger the slide to 0.7450 and 0.7430. Below 0.7400, another swing down towards 0.7300 will start. On the upside, a return above 0.75 (200-day MA) is needed to open the way up to 0.7570 and higher.
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.
Global stocks were mostly lower on Monday, following the weakness on Wall Street on Friday that stemmed from the weaker-than-expected retail sales report for December.
Most analysts claim EUR/USD will dip to 1.2000. After that, the pair should reverse to the upside.
Asian equity markets began the week cautiously after Friday’s losses on Wall St. Mixed Chinese GDP added to the tentative mood for stocks.