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.
USD/CAD: a pause before the move
Information is not investment advice
USD/CAD is consolidating after breaking above the bearish “wedge”. The pair has bullish dynamics since the start of June. However, it ran into the resistance of the 200-period MA on the H4. As a result, bullish trades will become preferable only if the pair breaks above the previous high at 1.3715. Otherwise, the price will retest June support line in the 1.3600 area and try to get to 1.3550. News from Canada and comments from the Fed’s Chair Powell later on Tuesday will add to the pair’s volatility.
Trade ideas for USD/CAD
BUY 1.3720; TP 1.3800; SL 1.3700
SELL 1.3635; TP 1.3605; SL 1.3645
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.
U.S. stocks are seen opening mixed Thursday, pausing around record highs as investors await more fresh news on Covid-19 vaccines and potential fiscal stimulus.
A tentative mood was seen in Asia-Pacific bourses following the flat performance on Wall Street, whilst Chinese Caixin Services PMI printed its second-highest reading in a decade.
EUR/AUD rose to 1…