EUR/USD drops sharply toward 1.1900 as USD jumps on US tax plan

Matías Salord FXStreet

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.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

EUR/USD weakens below 1.1700 as Middle East tensions drive US Dollar strength

The EUR/USD pair trades with mild losses around 1.1685, the lowest since late January, during the early Asian session on Tuesday. The US Dollar gathers strength against the Euro as escalating tensions in the Middle East boost safe-haven currencies. The preliminary reading of the Harmonized Index of Consumer Prices from the Eurozone will be published later on Tuesday.

GBP/USD hovers around 1.3400 with bearish pressure intact

GBP/USD edges higher after three days of losses, trading around 1.3400 during the Asian hours on Tuesday. The technical analysis of the daily chart indicates an ongoing bearish bias, as the pair trades within a descending channel pattern.

Gold defends bids as US-Iran war continues to fuel safe-haven flows

Gold retains positive bias for the fifth consecutive day on Tuesday as rising geopolitical tensions in the Middle East continue to underpin safe-haven assets. However, a bullish US Dollar keeps the bullion below its highest level since late January, set on Monday, warranting caution before positioning for any further appreciation.