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.
CHF/JPY tested support
Information is not investment advice
CHF/JPY has been declining since the middle of January. It went down, as the yen was the number one safe haven after the outbreak of the coronavirus in China. The pair descended to the support line from November-December just above 112.00. In the short-term, we’ll likely see a pullback to the upside. An “inverted hammer” was formed on the D1 near the 31.8% Fibo retracement. Upside targets lie at 112.55 (Monday’s high), 112.70 (January 23 low) and 112.90 (100-period MA, short-term resistance line).
At the same time, the fundamental and bigger technical factors (weekly “inside bar” and the exchange rate going far away from the MAs) allow expecting that the recovery will be temporary and attract new sellers. The decline below 112.08 (the recent low) should also trigger selling.
EUR/AUD formed a candlestick with a long upper shadow on the D1. The pair is currently testing levels below the 50- and the 100-period moving averages.
USD/JPY has recently formed a higher low at the end of last week. Today the pair is testing levels above the 50-day MA.
EUR/USD is trading below 1.1750. Any further downside pressure will push prices down to 1.1730 and even lower to 1.1700.
Gold is trading sideways around the $1 900 level, but Biden’s victory will drive it upwards.
U.S. stock markets are set to open with a modest bounce after their worst day in over a month on Monday.