Majors on Wednesday: Markets Wait on Tax Reform as Euro Leads - Forex News by FX Leaders
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Majors on Wednesday: Markets Wait on Tax Reform as Euro Leads

Posted Wednesday, December 20, 2017 by
Rowan Crosby • 1 min read

Hi Guys,

Traders are waiting on the progress of US tax reform as there are some technicalities that need to be worked through. As such equities faltered and for the most part forex markets weren’t all that active.

The EUR/USD appeared to be the biggest mover as it drove up towards the overhead resistance at 1.1850.

For the most part, the USD has been falling this week as the DXY has failed to push much higher than 94.00. However, if we can tick all the US tax reform boxes then there is a good chance of a USD turnaround. But there is also the consideration that much of the short-term gains are priced in. I think that’s what we’re seeing in equities.

Forex Majors

AUD/USD – I’m still looking to sell 0.7693 should we be able to get a spike to that level.

EUR/USD – The Euro has had a rally just like it did last week. 1.1850 is the sell zone for me.

USD/JPY – The Yen looks to be a long for me but I’m watching the 112.50 level

NZD/USD – The Kiwi has fallen steeply but I’m still bullish – for now.

USD/CAD  – We tested 1.2900 and failed. I think we can break out though but we need a kicker.

USD/CHF – The Swissy is grinding along support and will potentially rebound.

GBP/USD – The Pound is still a fundamental trade to me at the moment.

US Dollar Index (DXY) – The USD is declining but tax reform might see a bounce. That could happen later today.

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About the author

Rowan Crosby // Asia-Pacific Analyst
Rowan Crosby is a professional futures trader from Sydney, Australia. Rowan has extensive experience trading commodities, bonds and equity futures in the Asian, European and US markets. Rowan holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.
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