US becoming nervous about tax overhaul

Media reports suggested that Republicans are in a hurry to vote for the tax bill, before new elected Alabama Senator Dough Jones is seated. However that is only one of the republican’s worries. Possible republican rebels, could overturn the existing slim majority of two votes which the Republican Party currently enjoys about the tax overhaul. Main topics of debate within the Republican Party the increase of deficit and tax cuts for higher earnings as well as corporations. Despite the fact that President Trump stated, that the middle class is to benefit from the tax plan, it still remains unpopular according to various polls, hence there is a broader audience for any dis-sentient voices. Also uncertainty increases in the US political stage as an old subject seems to reemerge as the Federal Communications Committee re-appeals Net Neutrality rules.

EUR/USD dropped during the ECB press conference yesterday Thursday and broke the 1.820 support level and continued to trade at lower levels during the Asian morning today. We continue to have the opinion that should there be no further surprises in the fundamentals behind the EUR/USD the pair will continue to trade in a sideways direction. Should the bulls take the reins we could see the pair break the 1.1820 resistance barrier again and aim for the 1.1880 resistance hurdle. Should the bears take the driver’s seat we could see the pair breaking the 1.1725 support level and aim for the 1.1680 support zone

Please read our past post “Brexit on the Foreground” to better understand this post.