Asian stocks went much higher on Tuesday following a strong session in the U.S. led by tech stock rally. The market seems pretty convinced that another stimulus plan will be passed in the U.S. On the virus front, a vaccine in development by the University of Oxford and AstraZeneca showed promising results in early human testing. There’s also good news from China’s CanSino Biologics regarding the vaccine development.
USD continued the slide as we are having good news from the vaccine side. A couple of companies or universities have shown promising results in early human testing, including the joint efforts by the University of Oxford and AstraZeneca Plc. China’s CanSino Biologics and a partnership of Pfizer and BioNTech SE also delivered positive trial updates, bringing back hopes of quicker economic recovery.
Copper prices dipped as inventories in Chinese warehouses rose, while the spike in the number of Covid-19 cases dimmed hopes of a quick economic recovery. The World Health Organization reported a record increase in global coronavirus cases for a second straight day, with the biggest increases from the United States, Brazil, India and South Africa. Looking ahead, prices could remain under pressure as the market risk sentiment remains depressed with rising geopolitical tensions and the struggle to keep the pandemic under control.
Gold prices edged higher with a weaker dollar providing an additional boost to its rally. Meanwhile, the risk off sentiment buoyed demand for the safe-haven asset with the surge in the number of COVID-19 cases around the globe.
Oil prices pushed higher overnight however found itself anchored sideways during the Asian trading session as investors weighed virus and weather-driven demand whilst taking into account that US crude and gasoline stockpiles continued to shrink. OPEC+ still maintains its stance on ramping up supply to the market the month after as well. In line with oil, the CAD strengthened and outperform against a weaker USD however the gains tapered off at the start of the Asian trading session as well.
Technical & Trade views
USDCAD (Intraday bias: bullish above 1.3509)
We turned bullish as price is approaching 1st support where the 61 fib extension is. Price is likely to bounce off the level towards 1st resistance where the horizontal swing high is. RSI also indicates bullishness.
UKOIL (Intraday bias: Bullish above 43.14)
Oil drifted higher. With price above moving average and MACD above 0, it is possible for price to still push higher on further bullish momentum. As long as 1st support at 43.14 holds, further push up towards 1st resistance at 43.82 is highly likely.
XAUUSD (Intraday bias: Bullish above 1815.70) 
Price is facing bullish pressure from our first support, in line with our ascending trend line where we could see a bounce above this level to our first resistance level. Stochastic is also seeing some room for further downside before approaching our support level as well.
XCUUSD (Intraday bias: Bearish below 2.93067)
Price is facing bearish pressure from our first resistance in line with our 78.6% fibonacci retracement level where we could see a further drop to our first support target. Stochastic is showing signs of bearish pressure as well.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.