USD suffers from US tax reform jitters

At the start of the last trading week for 2017 last Friday’s positive sentiment for the USD appears to have evaporated, as our USD index based on the euro, British pound, Japanese yen and Aussie continues to pull back sharply ahead of the crucial vote on the US tax reform bill, despite news that the bill is likely to be passed by the end of this week.

From a technical perspective any downside target for the index lies at 11930, the price region responsible for creating the double bottom candle pattern of late November/December, and from which the index then rallied to touch a high of 12050. This price point is now our upside objective, but given the usual political posturing and grandstanding in the run up to the vote itself, in the short term we can expect the index to trade within its current relatively narrow range. And with much reduced liquidity due to the upcoming holidays, and end of year squaring expect any price moves to be highly volatile and erratic.

By Anna Coulling

 

About Anna 1054 Articles
Hi – my name is Anna Coulling and I am a full time currency, commodities and equities trader. I have been involved in both trading and investing for over fifteen years and have traded many different financial instruments, from options and futures to stocks and commodities. I write and publish articles ( mostly for free ) for UK and international publications on a wide variety of financial issues, and in particular I enjoy helping others learn how to invest and trade.

2 Comments on USD suffers from US tax reform jitters

  1. Hi Anna,

    I bought your book (Three Dimensional approach to Forex trading ).
    The knowledge in there is invaluable,it has given a clear and emphatic understanding of the market.
    Regards,
    Nasima

    • Hi Nasima – many thanks for taking the time to write to me and I’m so pleased you enjoyed the 3D book. You may be interested to learn I am publishing two more books in the near future, both with detailed worked examples in VPA, (one for forex with over 100 worked examples, and one for stocks with over 200 worked examples) and a third to follow applying the same principles to Cryptocurrencies, so I hope you will enjoy reading these too. They will all be on Amazon in both Kindle and Paperback format. So thanks again and wishing you every success in your trading – regards Anna

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