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 returned to resistance
Information is not investment advice
USD/CAD shot up this week but met the resistance of the daily MAs in the 1.3200 area. Here’s also the 50% retracement of the October advance. The further resistance levels are located on the way to 1.3228 (61.8% Fibo). On the D1, the pair formed an “inside bar” as it tried to consolidate after the rapid growth. Support is located at 1.3130 (September low, yesterday’s low). A decline below this level will lead the pair back to 1.31 and 1.3050.
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.
Fed's Powell said a slowing recovery and a surging pandemic meant the US was entering a "challenging" few months, with the potential deployment of a vaccine still facing hurdles.
Investors are waiting for the significant decision of OPEC+ members to prolong oil output cuts or stop them.
The progress on the COVID-19 vaccines and hopes of a swift economic rebound next year added to the optimistic sentiment in the market.