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.
Trading on the risk sentiment
Information is not investment advice
As a rule, when the price consolidates in a horizontal corridor, it’s possible to trade on the potential break of this range.
CAD/JPY is sensitive to the market sentiment: if risk appetite improves, the pair will rise, while if traders become risk-averse, the pair will fall. The pair has been consolidating between 83.85 and 83.20 for the second week in a row as the market keeps waiting for the news about the US-China trade deal and the Brexit delay. A break of this range will make the pair move by 60 pips or more. Notice that there are more support levels of the downside than resistance levels on the upside, so a break to the upside looks easier for the price.
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.
How do we trade the gold price? It seems to be losing the upside momentum - no problem for bears!
GBP/USD went beyond 1.37 and reversed the gains. How to trade it now?
Let's trade GBP/USD. It gives a very interesting bullish layout currently - you'll find both mid-term and long-term strategies inside.