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.
GBP/CHF was rejected down
Information is not investment advice
Here’s another short-term trade idea based on pursuing the market’s correction (remember that this kind of trade is riskier than trend trading).
GBP/CHF got capped last week by the descending 200-week MA at 1.3320. This is a very strong resistance level. On D1, we can see that the pair rapidly turned down from that level. The weekly pivot point is located at 1.3186, and GBP/CHF is now trading below this level. There are reasons to expect that the pound will slide a bit more before it gets to support line of the uptrend which has been in place since the start of the year.
The return above 1.32 is needed to let the pair retest 1.3260 and 1.33.
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.
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The progress on the COVID-19 vaccines and hopes of a swift economic rebound next year added to the optimistic sentiment in the market.
World shares paused on Monday to assess a record-breaking month