U.S. Tax Reform Stumbles In Senate
IronFX | Dec 20, 2017 04:57AM ET
US Tax reform stumbled
- The US tax reform passed the voting test of the House of Representatives yesterday Tuesday with a 227-203 majority. However, it stumbled at the Senate due to some technicalities. The bill is to be resent to the House of Representatives for a revote after the Senate vote and after some provisions are stricken out. Should the bill pass the house vote as expected, it should be finally signed by President Trump, marking the first Republican major legislative win during the Trump administration. On another US political front, US government shutdown avoidance, may prove to be more tricky than expected as debate on health care and defense spending could complicate the passing of a temporary spending bill by Friday midnight.
- EUR/USD rose yesterday and broke the 1.1820 (S1) resistance level (now turned to support). Should it continue to remain under buying interest, the pair could break the 1.1880 (R1) resistance level and aim for the 1.1910 (R2) resistance level. On the other hand should the greenback have some favorable news and the pair comes under selling interest we could see it breaking the 1.1820 (S1) support level and aim for the 1.1795 (S2) zone.
Bitcoin corrected somewhat
- Bitcoin corrected somewhat yesterday and during today’s Asian morning, however the fundamentals are not clear. It could be the case that repeated warnings about the cryptocurrency have weighed in on Bitcoins price action. Also another possible factor could be that a South Korean coin exchange was hacked and as a result is about to declare bankruptcy.
- Bitcoin/USD dropped somewhat yesterday, breaking the 17000 (R1) support zone (now turned to resistance). It should be noted that there was also a clear break of the upward trend which the cryptocurrency had, since the 30th of November. It should also be noted that Bitcoin’s course crossed the 200 hours and 100 hours moving averages in the 1-hour chart. It remains to be seen if this is going to be a mere correction or a prelude of a major downward trend in the cryptocurrency’s prices. Moving forward with the technical analysis, after breaking the 17000 (R1) support level (now turned to resistance) should the bears take the driver’s seat the next support level would be the 15580 (S1) hurdle and should that be broken as well, the pair might find more support at the 14000(S2) territory. Should the bulls take the reins again then we could see the cryptocurrency breaking the 17000(R1) resistance level again and aim for the 19500 resistance zone.
In Today’s other economic data
- From Sweden we get the Riksbank interest rate decision. Riksbank is widely expected to keep its interest rate unchanged at -0.50%. Should that be the case the focus will shift towards the report accompanying the decision and whether it will leave the door open for future rate hikes. The volatility is expected to be high given the reaction on the 12th of December when the increase of the CPI rate was announced.
- From Germany we get the PPI for November and from the US we get the Existing Home Sales for November as well as Crude Oil inventories.
- As for today’s speakers, we expect BoE mark Carney and Bundesbank President Jens Weidman to speak today.
Get The News You Want
BTC/USD
Support: 15580 (S1), 14000 (S2), 12000 (S3)
Resistance: 17000(R1),19500 (R2), 21000 (R3)
EUR/USD
Support: 1.1820(S1), 1.1795 (S2), 1.1725 (S3)
Resistance: 1.1880(R1), 1.1910(R2), 1.1960(R3)
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