The EUR/USD is still looking bearish after the rate hike in the US. I’m looking to enter short on any bounce with a keen eye on the 1.1800 level. To the downside I am still eyeing off the 1.1700 level. However we need to extend our stop loss above resistance.
EUR/USD 240 min Chart - EUR/USD is Bearish
Can the Trump Tax Cuts get through this week?
Last week was all about the Central Bankers. And sure enough there were fireworks. In the US the highly anticipated rate hike occurred however we actually got a fall in the USD. That sent the EUR/USD spiking higher. Despite the rise in official rates, it looks like there might be less in store in 2018 than many hoped. However by weeks end, the EUR/USD had done an about-face and was back to where it started.
This week is the final one before the holiday period gets underway. However there are still some key events in store. While we do have GDP out of the US and CPI from the Eurozone, the main event is the potential for the Trump Tax Cuts to pass. If they get through they present a huge boost to the US economy as well as the USD.
We have been pricing in tax cuts slowly but surely, however they are now on the verge of becoming a reality. It marks one of the biggest changes on a political level that we’ve seen in 30-40 years.
Technical Analysis - The Key Levels
The EUR/USD is grinding lower, despite the short-term spike of last week. Both 1.1800 and 1.1850 were important levels. Price snuck through 1.1850 which was unfortunate. To the downside 1.1700 is the big barrier. If it can break, as it might with USD strength, we will have plenty of downside still to come.
EUR/USD - Key Levels
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