- Spot jumped to daily highs beyond 1.1640.
- Doubts on the US tax reform keep weighing on USD.
- Up move decoupled from US 10-year yields so far.
A bout of buying interest around the shared currency pushed EUR/USD to the area of fresh tops in the 1.1640/45 band.
EUR/USD focused on US tax reform
The pair quickly climbed to fresh 4-day tops in the 1.1640 area, as market participants remain sceptics about the US tax reform proposed by the White House. It is worth mentioning that Republicans should shed more light on the proposed reform later in the day.
The greenback suffered the impact and quickly sent the US Dollar Index (DXY) to fresh 4-day lows in the 94.60/55 band, despite yields of the key US 10-year reference are testing tops beyond the 2.33% level and yields of the 2-year note keep navigating the upper end of the range.
In the same direction, yields of the German 10-year Bund leapt to fresh tops in the boundaries of the 0.38% level, while the stock benchmark DAX plummeted to lows near 13,250 pts.
Ahead in the session, US initial claims are next on tap seconded by wholesale inventories, both prints unlikely to be market movers in light of expectations over the US tax reform.
EUR/USD levels to watch
At the moment, the pair is up 0.34% at 1.1636 and a breakout of 1.1692 (high Nov.3) would target 1.1706 (21-day sma) en route to 1.1736 (38.2% Fibo of the 2014-2017 drop). On the flip side, the next support emerges at 1.1555 (low Nov.7) seconded by 1.1448 (high Jun.30) and finally 1.1280 (200-day sma). On the upside, Furthermore, FXStreet’s Technical Confluences Indicator (TCI) is noting an important resistance zone in the vicinity of 1.1620, where sit a pivot point, the 5-day sma, recent highs and a Fibo retracement.
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