FxWirePro: EUR/USD trades lower after Trump’s tax plan, good to sell on rallies
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…
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 1.17441.
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.
