EUR/USD: Profit Taken At 1.1960, Buy Again At 1.1830

 | Nov 28, 2017 06:08AM ET

EUR/USD: Profit taken at 1.1960, buy again at 1.1830
Macroeconomic overview:

  • The USD strengthened slightly in the yesterday’s afternoon, with the near-term focus on a possible Senate vote on a U.S. tax plan later in the week. Worries about potential delays in the implementation of U.S. tax cuts and the possibility of reform measures being weakened have weighed on the greenback in recent weeks.
  • A U.S. Senate Republican tax bill strongly backed by President Donald Trump faced potential opposition on Monday from two Republican lawmakers who could prevent the sweeping legislation from reaching the Senate floor. Senators Ron Johnson and Bob Corker, both members of the Senate Budget Committee, said they could vote against the tax package at a Tuesday hearing that Republican leaders hoped would send the legislation to a full Senate vote as early as Thursday. Each senator is seeking different changes to the legislation. Their opposition could create the first major hurdle for the Republican tax overhaul in the Senate, where political infighting killed the party's effort to overturn the Obamacare healthcare law earlier this year
  • Jerome Powell, the nominee to chair the Federal Reserve, defended the Fed's use of broad crisis-fighting powers in remarks prepared for his Tuesday Senate confirmation hearing, positioning himself as an extension of the central bank policies of current Chair Janet Yellen and her predecessor Ben Bernanke. Powell, who is currently a member of the Fed's Board of Governors, endorsed the core ideas that have defined U.S. central banking since the financial crisis of 2007 to 2009 - a willingness to move aggressively against a downturn, and an insistence on flexibility and independence from political influence in setting policy. On current monetary policy, he said, "We expect interest rates to rise somewhat further and the size of our balance sheet to gradually shrink."


Technical analysis and trading signals:

  • The EUR/USD is looking a little overstretched on the charts. We took profit at 1.1960 on Monday and our strategy now is to use corrective action as opportunities to rejoin bull trend.
  • We placed bid at 1.1830.