EUR/USD today: the US dollar strengthens on the promotion of tax reform
After differently directed Friday tradings based on the data that in the case of the connection between US President Trump and Russia, new witnesses may appear, the US currency lost almost all the earliest earned points. As a result, expectations for the correction to support levels 1.1880-50 were fully justified. The new week opened with a noticeable strengthening of the US dollar, which was caused by the further promotion of the tax reform in the United States.
Events for today:
- 17:00 – the volume of industrial orders in the US (m/m).
The day is not full of news today, but the market follows the data from the US regarding the tax reform and political risks associated with the situation of Trump and Russia.
Given the fact that optimism about the US dollar has significantly increased due to the new positive data on the tax reform in the US, the pair EUR/USD remains in an upward trend. As a result, it can limit the strengthening of the American because of the political scandal. Significant support level is 1.1840-50, the breakthrough of this level will open the way to the levels: 1.1820-00 and 1.1780. I am more inclined to the strengthen of the American, but the market can switch to the political risks in the US and maintain an upward trend for this pair. In the end, this will resume the uptrend to resistance levels 1.1900 and 1.1920-30.
The EUR/USD chart. The current price is 1.1860.
Hanzenko Anton