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 met resistance
Information is not investment advice
USD/CAD was rejected down by the resistance in the 1.3460 area. The pair is now trading below the weekly pivot point at 1.3385. It’s quite reasonable to expect the pair to correct down after the rapid advance it made during the last two weeks.
As long as USD/CAD is trading below 1.3370 (50-period MA on H4), it will be vulnerable for a decline to 1.33. This is a significant level for the pair. As long as it stays above this point, the inverted “Head and shoulders” remains in place thus leaving the door for the further upside wide open. The next bullish target above 1.3460 will be at 1.3570.
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.
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