- USD resumes slide on Senate tax bill.
- EUR/USD bullish momentum reinforced.
- Republican’s plan would delay corporate tax cuts until 2019.
The EUR/USD pair rose quickly to fresh 6-day highs above 1.1650 after the confirmation that Senate Republicans plan to propose delaying tax cuts to corporations until 2019. The plan is against President Trump intentions to make immediate changes.
Senate tax bill to delay corporate tax cut until 2019, dollar to deflate?
The US Dollar Index dropped further and hit a fresh low at 94.33, moving closer to November lows at 94.25, a key technical level. The greenback was recovering modestly but is now again under modest pressure. Gold approached daily highs and the Dow Jones extended losses. The 10-year yield fell from 2.34% to 2.32%.
Technical levels
At the moment of writing, EUR/USD stands at 1.1646, up 55 pips for the day, having the best performance in weeks. It is back above the 1.1620 key area that now is the immediate support. As long as it holds above, the euro would remain supported.
The next target to the upside might be seen at 1.1660 (Oct 30 & 31 high) and above that area, the euro could test November highs located at 1.1685/90 and the 1.1700 handle. A critical level above currently stands at 1.1740, the downtrend line from September highs, a break higher could signal that a short-term bottom is in place.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.