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: short-term trade idea
Information is not investment advice
USD/CAD met resistance in the 1.3490 area (resistance line connecting April and May highs). It fell to the middle of the trading range where it has spent the past month. On H4 and H1, we see a “triple top” between 1.3455 and 1.3490, the break to the downside, and a small consolidation. Oscillators are bearish, so it looks like the pair wants to continue the downside in the short term. The target is just above the 50-day MA at 1.3390.
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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Asia-Pacific stocks lacked firm direction as momentum faded from the record-setting performance on Wall St, where the S&P 500 and Nasdaq printed fresh all-time highs
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.