Intraday Forex Tuesday, November 24 (USDJPY, EURUSD, & etc.) Risk-sensitive currencies gained on optimism of vaccine news and new U.S. administration


Hi everyone. This observation is made around 5:00 UTC today, with 15 minutes time frames. The Resistance and Support Line were constructed according to Fibonacci retrenchment. Any discussion is welcomed.

Asian stocks poised to trade mostly higher on Tuesday as investors bet on a return to normal economic activity amid vaccine progress. U.S. President-elect Joe Biden also had received the go-ahead to begin his presidential transition. The dollar strengthened and Treasury yields rose.

Hopes of more monetary stimulus however were dampened after Treasury Secretary Steven Mnuchin last week pulled the plug on some of the Fed's pandemic emergency lending programs.

The U.S. dollar index touched its lowest since Sept. 1 on Monday before edging higher today, though still flirted near its 12-week lows. The dollar’s index recovered a touch to 92.47 after dropping to 92.013 overnight.

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  • The euro advanced 0.10% to stay at $1.1851 on Tuesday, though still lacking momentum to clear a hurdle to $1.19.​
  • The dollar weakened as the rash of coronavirus restrictions across the U.S. has stoked speculation the Federal Reserve might have to ease monetary policy further, particularly with no fiscal stimulus deal in sight.​
  • Chicago Federal Reserve Bank President Charles Evans said Monday that even if rapid vaccine distribution next year puts the economy on course for a faster recovery, the U.S. central bank still expected to keep interest rates at their current near-zero level until perhaps into 2024.​
  • On Sunday, Italy's government has approved a new package worth around 10 billion euros (US$11.9 billion) to support pandemic-hit businesses.​
  • The focus is on the minutes of the U.S. central bank’s last policy meeting, which are due to be released on Wednesday.​
Important Levels to Watch for:​
  • Resistance line of 1.19153 and 1.19562.​
  • Support line of 1.17828 and 1.17417.​

  • The dollar traded at 104.53 per yen after climbing 0.9%. The greenback touched a more than 2-week high earlier today.​
  • USD/JPY recovered from last week losses and posted gains after stocks rallied on COVID-19 vaccine optimism, which reduced the safe-haven demand for the yen.​
  • Yen also on slippery ground as President Biden transition news boost risk appetite, apart from rising optimism following news of Federal Reserve Chair Janet Yellen to be nominated as U.S. Treasury Secretary.​
  • Meanwhile, the Bank of Japan is estimated to spend up to 50 billion yen ($478 million) under a new scheme aimed at incentivising regional banks to consolidate, a senior central bank official said on Tuesday.​
Important Levels to Watch for Today:​
  • Resistance line of 104.894 and 105.286.​
  • Support line of 103.623 and 103.230.​

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