EUR/USD and Trump Tax: Levels, Ranges, Targets

Brian Twomey Brian's Investment

Success in Trump's tax cut plan is seen not only in majorities in the House of Representatives and Senate but Republicans control 24 seats V Democrats 16 on the House Ways and Means Committees, the origination of Tax legislation. Democrats can't block tax legislation by any measures or rules. Further, Republicans control the Rules committees in the House and Senate. This means Republicans control Floor debate structures.

Current tax plans are in the period of Committee Mark Up which means the legislation was drawn and written already and Mark Up sessions are designed to work out the finer Tax cut language. Trump's tax plan success is in the 100% win category and its a matter of days before Floor debate and votes are seen to ensure Tax cut plans are codified in law. Democrats lack a leg to stand on in this tax plan.

More interesting is Republicans control Governor and State legislatures in 33 of 50 states which means possibly more tax cuts inside those respective states. At the very least, government size should be cut and that's a built -in tax decrease by itself. Trump's control for the next 2 years until Congressional elections in 2018 is solidified.

A further tax cut will be seen by elimination of Obummer care as premiums will see a drastic decrease.

EUR/USD ranges are wide so any talk from the political system and any movements derived are meaningless unless EUR/USD breaks 1.0784 and its not likely. Above in EUR/USD to rise must clear tough hurdles at 1.0682, 1.0707, 1.0724 and 1.0746. Then comes 1.0784. EUR/USD overall on the topside remains heavy and overbought. Today's hurdles to clear will continue their decline in days ahead as EUR/USD prices drop.

On the bottom side, vital break is located at 1.0584 then 1.0574, 1.0523 and 1.0518. Our bottoms and long points are located at 1.0619 and 1.0599. Most vital for today is 1.0523 due to its significance as a range break. Not likely to be seen today but a good shot exists in day's ahead. Further import to 1.0523 is a break would target 1.0461. With Trump's capitalist tendencies and Tax cuts V Draghi's dream of economic recovery through stimulus, EUR/USD is heading lower.

Author

Brian Twomey

Brian's Investment

Brian Twomey is an independent trader and a prolific writer on trading, having authored over sixty articles in Technical Analysis of Stocks & Commodities and Investopedia.

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