EUR/USD drops sharply toward 1.1900 as USD jumps on US tax plan
|The US dollar rose sharply across the board during the last hour after the announcement that Trump's reform tax plan could be released September 25. EUR/USD tumbled toward 1.1900, extending the correction that started last Friday.
USD soars on tax plan, despite PPI
EUR/USD moved marginally to the upside after the US PPI report but continued to trade in the 1.1990 -1.1965 range. The pair broke sharply to the downside amid tax reform plan talks. It bottomed at 1.1904, reaching the lowest level in a week.
At the moment, it trades at 1.1910/15, under pressure, down 50 pips for the day, accelerating the speed of the correction.
US House Ways & Means Chair Brady: To release tax plan on week of Sep 25th
US: PPI for final demand rises 0.2% in Aug; goods increase 0.5%, services advance 0.1%
Levels to watch
The pair is challenging the 1.1900 handle, below that level, the 20-day moving average that stands at 1.1885 will come into play. Support levels might be seen at 1.1865 (last week low) and 1.1820/25 (Aug 21 high / Aug 31 low).
To the upside, resistance levels might be located at 1.1945, 1.1970 (20-hour moving average) and 1.1990/95 (daily high). The corrective tone is likely to prevail as long as EUR/USD remains below 1.2000.
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