The Greenback is having a big day versus the forex majors. Key movers have been the EUR/USD (-0.64%), GBP/USD (-0.70%), USD/CHF (+1.14%), and the USD/CAD (+0.32%). Also, plunging commodity prices have been the order of the day as the USD regains some of its swagger.

In a Live Market Update from Monday, I broke down the issue of tax reform and what it may mean to the world of finance. Since then, a late-Monday report from the New York Times outlined a proposed US$3 trillion spending plan from the Biden White House. Like the tax plan, details surrounding the spending plan remain vague. According to left-leaning CNN, here’s where the situation stands:

• Top advisors to the POTUS are scheduled to brief Biden on the plan later this week.
• The proposal is a two-part, $3 trillion “jobs and infrastructure” program.
• Clean energy, child care, and climate research are reported to be targets. 

At press time, there are no concrete numbers to report regarding the plan. Be on the watch for these items to begin surfacing over the weekend and into next week.

Amid the tax-and-spend news cycle, the Greenback is on the march against the majors. As a result, March USD Index futures are in bullish territory.

It’s Been A Solid Month For The USD Vs The Majors

The chart below shows March USD Index futures as of Monday’s close. As you can see, rates are holding firmly above weekly support.

Here are the levels to watch until Friday’s close:

• Resistance(1): 62% Current Wave, 92.310
• Support(1): Bollinger MP, 91.765

Overview: The key number to watch in this market is the 62% Current Wave Fibonacci retracement at 92.310. If this number is taken out in the next few days, a test of 94.250 will become probable by the early summer months.