TRADERS WAITING ON US TAX CUTS VOTE
The EUR/USD price is consolidating ahead of the vote on tax cuts in the US Congress. It is highly anticipated that the bill will be passed but we may see profit taking on this fact as previously the greenback had gained positions in anticipation of the fiscal stimulation. The EUR/USD received negative data today from the current account balance in the Eurozone which reported a surplus of only 30.8 billion euro in October against the 33.4 billion forecasted. Investors are reluctant to build up positions ahead of tomorrow’s release of GDP data in the US that may result in the growth of volatility.
The NZD/USD was able to restore some of the previously lost positions after it declined following the report of weak trade balance in New Zealand. The deficit indicator was 1193 million in November against the 495 million expected. Volatility is likely to increase today after the publication of the GDP report in NZ at 21:45 GMT.
The USD/CAD price is falling after macro statistics on wholesale sales in Canada which increased by 1.5% in October which is 1.0% less than expected. There is a high possibility of strong price movements tomorrow after the release of important data from the consumer price index and retail sales in Canada.
Special attention should be payed to USD/JPY dynamics due to the monetary policy statement of the Bank of Japan at 00:00 GMT. Also, the Reserve Bank of Australia bulletin at 00:30 GMT may trigger a spike in the activity of AUD/USD traders.
The EUR/USD is consolidating above the important 1.1825 mark. Fixing above this level may be the basis for continued price increases with the next target levels at 1.1925 and 1.2000. The low level of price fluctuations is a sign of the possible spike in volatility. In case of the price breaking through 1.1825, we may see the price decline to the 1.1730-1.1750 range.
The kiwi quotes rebounded from the strong support level at 0.6950 to 0.6980 and the SMA100 on the 15-minute chart. In case of breaking through the local low near 0.6950, the price drop may accelerate and the target levels in this case will be 0.6890 and 0.6825. The growth potential is limited by strong resistance at 0.7030.
The USD/CAD is trying to reach the important support line at 1.2800 and its overcoming may become a trigger for the bears to pull the price down to 1.2665. The price rebound is likely to be limited by the resistance line at 1.2915. The RSI on the 15-minute chart is near the oversold territory and that points to a possible upward price correction.