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/CHF awaits the news
Information is not investment advice
The USD is awaiting American economic figures that are due later today (preliminary GDP growth, durable goods orders, core PCE price index, personal spending, and Chicago PMI). The figures may bring some volatility to USD/CHF.
For the past couple of days, USD/CHF has been consolidating below the resistance line that connects the highs of October and November in the 0.9990 area. Notice that this is just below the 1.0000 mark - the parity level that naturally represents a considerable obstacle for buyers. In addition, the price has reached the upper Bollinger Band on the D1 and the Stochastic Oscillator is in the overbought area. This too should make the advance more difficult. On the downside, support has been around 0.9965. The decline below this level will open the way down to 0.9947 (200-day MA). Earlier this line didn't manage to hold the price action. The next levels to watch on the downside are at 0.9927 and 0.9885 (the 50- and the 100-day MAs respectively). Such a scenario will come into play if the market risk sentiment worsens.
If the United States and China keep moving towards a phase 1 trade deal and America releases decent economic data, USD/CHF may try for a break of resistance. If the pair settles above 1.0000, the new bullish targets will be at 1.0030 (October high) and 1.0050.
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.
The mix of economic reports from Canada and the USA will have a huge impact on the pair! Get ready with us!
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