Majors on Wednesday: Markets Wait on Tax Reform as Euro Leads
Rowan Crosby • 1 min read
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.
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.