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.
EUR/CHF gets some help
Information is not investment advice
It turns out that the Swiss National Bank is buying foreign currency in order to limit the appreciation of the CHF. The main currency pair which is monitored by the central bank is EUR/CHF. Yesterday, the pair formed a hammer-like candlestick on D1 - a sign of a potential bullish correction. The pair will retain chances of such a move as long as it’s trading above the 50-hour MA in the 1.0910 area. The target is at 1.0960 (50% of the July-August decline, July low).
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 seen opening mixed Thursday, pausing around record highs as investors await more fresh news on Covid-19 vaccines and potential fiscal stimulus.
A tentative mood was seen in Asia-Pacific bourses following the flat performance on Wall Street, whilst Chinese Caixin Services PMI printed its second-highest reading in a decade.
EUR/AUD rose to 1…