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 will move on the Fed’s meeting
Information is not investment advice
The New Zealand currency is not feeling very well on Wednesday as investors have obviously decided to take profit. NZD/USD met resistance around 0.6565 (61.8% Fibonacci of the July-October decline, top of the October-December bullish channel). The pair is now testing levels below the 200-day MA (0.6535). The line itself has a bearish bias. The meeting of the Federal Reserve will increase volatility. A decline below 0.6520 (50-period MA on the H4) will open the way down to 0.6496 (50% Fibonacci) and 0.6475/65 (100-period MA, November high). The ultimate support is at 0.6427 (support line). As for resistance, above 0.6565 it lies at 0.6585 (50-week MA, the long-term downtrend resistance line). This area will likely limit the upside if the USD gets in trouble.
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