EUR/USD Current price: 1.0883
View Live Chart for the EUR/USD
The EUR/USD pair eased within range, trimming most of Tuesday's gains after reaching 1.0950 at the beginning of the day, helped by increased dollar's demand. Things are extremely quiet in the macroeconomic front, albeit Thursday will offer much more, with the ECB economic policy meeting, and US Durable Goods Orders for March, among other first-tier data. US President Donald Trump is expected to unveil its tax reform plans later today, with market's speculating on a 15% - 35% cut for corporations. The higher the cut, the harder will be to cover the deficit such reform will generate, so a high number could have a temporal positive effect, particularly among equities, but be hardly sustainable in time, or even result in a dollar's slump, particularly if Trump fails to explain from where he will take the funds to replace the income. The impact of Trump words, as usual, is hard to forecast, so cautious is recommended.
Technically, the pair is modestly bearish according to the 4 hours chart, moreover after failing to sustain gains above 1.0930 region, the 61.8% retracement of the post-US election decline. Indicators in the mentioned chart have pulled down from overbought readings before stabilizing within positive territory, now turning south, whilst the 20 SMA stands now around 1.0860, offering an immediate support. Below it, the pair has scope to extend its decline down to 1.0820 the 50% retracement of the mentioned slide and the lowest for this week. Further declines seem unlikely for today. To the upside, only beyond 1.0900 the pair can recover up to 1.0950, while an upward acceleration above this last could result in a test of the key 1.1000 figure.
Support levels: 1.0860 1.0820 1.0790
Resistance levels: 1.0910 1.0950 1.1000
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