Majors on Monday: Will Money Start Flowing into the USD?
Rowan Crosby • 2 min read
While last week was very active, to say the least, it was the action over the weekend that might have the most impact on markets. US President Trump and his tax bill are continuing to move along. The Senate passed the bill over the weekend and that has the potential to fire up the USD this week.
The tax cuts might sound boring, but it is focusing on cutting US corporate tax rates to 20% from the current level of 35%. That means that there is a strong chance that there will be billions of dollars flowing back into the US economy in years to come and that is a boost for the US stock market and of course the USD.
With that in mind as the tax bill gets closer to becoming reality, the majors are going to be in the crosshairs.
AUD/USD – The AUD is still trending lower and 0.7640 is my preferred level to be selling.
EUR/USD – The Euro has been all over the place this last week. Longer-term we have a sell signal in place.
USD/JPY – The Yen tanked on the back of the Flynn saga on Friday, which now appears to be false. I see us pushing higher and testing 113.00.
NZD/USD – The Kiwi has rallied but I am still bearish in my bias.
USD/CAD -The CAD has been wild, to say the least, and I’m looking for a bounce of the current support level.
USD/CHF – The Swissy is at a big support level and despite the fall, I feel we can bounce here.
GBP/USD – The pound has been outpacing the USD of late and that can continue. By pullbacks.
US Dollar Index (DXY) – The USD will eventually regain the highs, so I will be looking to buy pullbacks, starting at 92.60.