USD GAINS POSITIONS ON OPTIMISM OF TAX REFORMS PASSING
The EUR/USD is falling against the US dollar due to rising interest in risky assets ahead of voting on tax reform in the US. Doubts about the ability to pass the law on tax cuts were the basis for the recent price appreciation of the EUR/USD. USD bulls were supported by strong macro data released today which showed that industrial production in the US increased by 0.9% in October against the 0.5% forecasted. The consumer price index for the Eurozone remained at 0.9% and had little impact on traders. Tomorrow, at the center of attention will be housing market data - the construction sector is key for the US economy.
The GBP/USD continued positive dynamics after the publication of positive news on British retail sales that grew by 0.3%, which by 0.2% better than forecasted. The growth potential of the British pound is limited due to fears linked to the outcome of the Brexit talks between the UK and the European Union.
The aussie quotes are consolidating today after controversial labour market statistics were published. Unemployment reduced to 5.4% in October, which is 0.1% better than expected, but employment has grown by only 3,700 against the 17,800 forecasted.
Among important events today investors should pay attention to the business NZ PMI and producer price index in New Zealand at 21:45 GMT.
The EUR/USD price is falling today after it was not able to fix above 1.1825. Within the current descending correction, the quotes may return to the support at 1.1730 and the upper boundary of the channel which it had left earlier. In order to resume positive dynamics, quotes need to overcome the SMA100 on the 15-minute chart and the local high near 1.1800.
The GBP/USD demonstrated positive dynamics today and reached the upper limit of the rising channel. Fixing beyond the limits of the channel may become a trigger for continued increases to 1.3250 and 1.3400. In case of opening short positions with potential goals near 1.3050, the stop should be set above 1.3230.
The AUD/USD is consolidating under the support at 0.7600. Currently, quotes approached the upper limit of the descending channel and its breaking and gaining a foothold above 0.7600 may become a signal to buy, with potential targets at 0.7635 and 0.7700. On the other hand, we do not exclude the fall resuming with the first target at 0.7565.