EUR/USD: Trump's tax reforms not a market impact so far ... but ... let's wait and see ...

Currently, EUR/USD is trading at 1.1749, down -0.36% on the day, having posted a daily high at 1.1796 and low at 1.1717.

We were seeing some downside just ahead of the Trump speaking with the price moving from 1.1763 to 1.1749.

Prior to his speech, we had an Overview of President Trump's tax proposal and Trump, albeit thirty minutes or so late, delivered the GOP's tax framework at a Rally in Indiana as Vice President Pence touched on in Anderson last week.

Trump started by saying that they want tax reform that is pro-jobs worker, pro-American and pro-family. There will be tax cuts for the middle class, bringing back the jobs and wealth to the country.

"It is time to take care of our people nations and to fight for our great American workers," Trump exclaimed. 

However, while there has been no market reaction as yet, traders prefer to trim the short dollar positions, betting on a December rate hike this year, while otherwise, traders are running out of patience in respect to the ECB's timings of their own adjustments to Q/E. 

US Durable Goods Orders: Positive momentum heading into year-end - Wells Fargo

US durable goods was also a positive for the dollar, especially considering the previous that sparked a big EUR/USD rally last month on the disappointment. 

In respect of US 10yr yields, they rose from 2.24% to 2.31% - a two-month high, 2yr yields from 1.45% to 1.48 – a nine-year high, as noted by analysts at Westpac. "Fed fund futures yields continued to price the chance of a December rate hike at 76%," they noted, underpinning the dollar. 

EUR/USD levels

Technically, the H&S is a factor that keeps a lid on rallies with EUR/USD now below the 5-month uptrend at 1.1875 with 1.1662 as the August low in sight. The long upper wick on the monthly sticks is also a bearish factor. 

The 20-day MA at 1.1927 is a possible major resistance with a longer-term downside target at the mid-June high at 1.1296 further out. Nearer term, the cloud top at 1.1725 and the 38.2% Fibo of the June-spet 1.1119-1.2092 rise at 1.1720 is likely to be a strong level of support.