- EUR/USD has declined for 3rd consecutive days and formed a bottom at 1.17180 (200- W MA) and shown a minor jump from that level. The pair awaits German CPI for further bearish continuation and is currently trading around 1.17775.
- USD gained against all major pairs after President Donald Trump’s new tax structure. The framework proposed by Donald Trump and Republicans shows that tax on corporates reduced to 20% from current rate of 35%. The number of tax brackets are reduced from 7seven to three for individuals. The new bracket would be 12%, 25% and 35%, with top rate down from 39.5%.
- Technically pair is facing strong support at 1.17200 (200- W MA ) and any convincing break below that level confirms minor weakness , a decline till 1.16600/1.1600 likely.
- On the higher side, near term resistance around 1.17800 (high reached after making a low of 1.17180) and any break above will take the pair to next level till 1.1836 (50- day MA)/ 1.1870. Overall bullish continuation only above 1.20925.
It is good to sell on rallies around 1.1770-1.17725 with SL around 1.1825 for the TP of 1.1660/1.1600.
Resistance
R1- 1.1780
R2 1.1836
R3- 1.1870
Support
S1- 1.1720
S2-1.1660
S3-1.1600
