Gold has started a remarkable downside correction and stands on the key 23.6% retracement area after a failure to hold the 38.2% retracement area.
USD/CHF still favored by the bulls
USD/CHF is waiting for a fresh bullish catalyst that trigger buy orders at the current stage, as it’s hovering very close to the Fibonacci level of 50% at 0.9540, where a rebound happened on Tuesday’s session. If the pair manages to break above the 200 SMA at H1 chart, then the focus should be placed at the Fibonacci area of -23.6% at 0.9699. However, if the support level of 0.9508 gives up, then it might plummet towards the 0.9432 level.
RSI indicator remains slightly in the positive territory.
European shares fell on Monday as rising COVID-19 infection rates in Europe prompted renewed lockdown measures in some countries, casting doubt over the economic recovery, with a lack of U.S. stimulus also weighing on sentiment.
Asian equity markets were subdued, and US equity futures traded choppy after last Friday’s losses on Wall Street.
Gold is steadily plummeting for the third consecutive day. Where is the bottom? Let’s find out.
UK's Raab supports that virus restrictions are serious, proportionate
The dollar index was up late Tuesday afternoon in Asia, extending the 0.8% gain in the previous session, when COVID-19 fears and worries over the US Congress’ stimulus impasse drove a selloff across other assets.