The US dollar stayed under pressure as riskier currencies benefited from the increased optimism.
Daily Market Analysis
Here's the technical analysis of USD/JPY, AUD/JPY, NZD/JPY, and silver!
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.
On Thursday, XAU/USD tested levels below $1 860, but then managed to close near the day’s high. The support in the $1 860/50 has been limiting the downside since the end of the summer.
Looking ahead, highlights from macroeconomic calendar include UK retail sales, Eurozone consumer confidence, ECB's Lagarde, Fed's Kaplan, Barkin, George speeches.
Dow Jones ended lower following late-day selling Wednesday on signs of further Covid-19 restrictions in the U.S. that threaten the pace of the recovery, and an intraday reverse in Boeing. Asian bourses were mixed as the region partially shrugged-off the risk-averse mood that rolled over from US where early vaccine optimism faded amid COVID-19 concerns.
EUR/USD fell below 1.1850 after reaching 1.1920 on Monday. The pair consolidated after the initial bearish move.
After a wide consolidation during the US vote count, XAU/USD has managed to close above $1 915 on the H4 (50-day MA).
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.
CHF/JPY retraced 61.8% of its August-September decline, corrected down, formed a higher low above the 100-day MA and now seems eager to rise to the 78.6% Fibonacci level at 116.90.
U.S. stock markets opened higher on Monday, buoyed by hopes for a last-minute agreement on a comprehensive fiscal stimulus package before the elections on November 3.
EUR/AUD formed a candlestick with a long upper shadow on the D1. The pair is currently testing levels below the 50- and the 100-period moving averages.