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/USD is at decisive levels
Information is not investment advice
EUR/USD was supported in the 1.0990 area last week. The support was strengthened by the fact that the attempted breakout of this level failed. On Monday, the pair recovered on the weak US data and went up through the 50- and the 100-day MAs. Now these lines provide support at 1.1070 and 1.1040. Resistance is now located in the 1.1100/1.1115 area (trend line going down from October 2018 highs). The advance above this zone is needed to open the way up to 1.1160 (200-day MA). All in all, EUR/USD finds itself in a confined space now, so bigger moves should come soon.
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.
Fed's Powell said a slowing recovery and a surging pandemic meant the US was entering a "challenging" few months, with the potential deployment of a vaccine still facing hurdles.
Investors are waiting for the significant decision of OPEC+ members to prolong oil output cuts or stop them.
The progress on the COVID-19 vaccines and hopes of a swift economic rebound next year added to the optimistic sentiment in the market.