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 may be capable of more
Information is not investment advice
USD/CAD firstly formed a bullish “engulfing” candlestick on the W1 and then confirmed the upside by the following strong bullish candlestick. On the daily chart it managed to form a higher low and overcome important resistance levels of the 100- and 50-day MAs (1.3195 and 1.3205). These lines will from now on act as support for the price. Yesterday the pair closed above 61.8% Fibo retracement of the October decline at 1.3228. As a result, there’s scope for the exchange rate to go up to the 1.3275/80 area (200-day MA, 78.6% Fibo). On H4, indicators show divergence, so the pair may go lower before heading to the upside targets. Look for buy signals between 1.3230 and 1.3205. The decline below 1.3190 will open the way down to 1.3160.
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 set to reopen higher after the Martin Luther King Day holiday on Monday, with Yellen’s remarks a welcome reminder of the momentum behind economic stimulus measures.
Joe Biden will take the post of president of the USA on the morning of 20 January 2021. Trump is going to skip the inauguration. What will be the market reaction? Let’s find out!
Asian equity markets mostly rallied with risk appetite spurred as trade picked up from Monday’s holiday.