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.
NZD/USD ahead of the RBNZ meeting
Information is not investment advice
A bearish “engulfing” pattern was formed on the W1 chart of NZD/USD around the 38.2% Fibonacci retracement level of the July-October decline. The pair’s currently is trying to return above the 50-day MA in the 0.6340 area, but we have to be cautious about the upside. The Reserve Bank of New Zealand is expected to cut its benchmark interest rate early on Wednesday that creates a big risk for the NZD. The decline below 0.6340 will open the way down to 0.6320 (last week’s low) and 0.6300 (support line connecting October lows). The loss of 0.6300 will lead to a bigger fall to 0.6260 (78.2% Fibo of the October-November advance). On the upside, resistance is at 0.6365 and 0.6385. Only the advance above the latter will open the way up to the October highs in the 0.6425/35 area.
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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Asia-Pacific stocks lacked firm direction as momentum faded from the record-setting performance on Wall St, where the S&P 500 and Nasdaq printed fresh all-time highs
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.