The dollar continues to scale down. The index of the dollar WSJ, which estimates its rate to the basket of 16 other currencies, fell 0.4% on Thursday. He declined during seven of the last eight sessions. Many of the trading ideas associated with the expectation of dollar growth are beginning to unfold.
The dollar is under pressure, despite the adoption of laws on tax reform, which, according to many economists, should support the growth of the US economy. Tax cuts from 35% to 21% (previously assumed to be 20%), according to supporters of reforms, will also support inflation, which will allow the Fed to accelerate the pace of tightening policies in 2018. Most taxes will be reduced from January, and by February many workers will take higher salaries.
At the same time, on the eve of New Year holidays, trading volumes remain low. American stock indexes remain in narrow ranges for the second week in a row. Investors in the stock market also continue to assess the impact of the recently adopted tax bill on the US economy. Economic indicators of the US economy are still favorable for the stock market on the eve of 2018.
The S & P500 grew in December by 1.3%, and from the beginning of the year by 20%. Overall, the S & P500 remains positive. Nevertheless, traders prefer to take a wait-and-see position in the stock market.
In the case of breakdown of the local resistance level at 2693.0 (December and year highs), the index will continue to grow.
*)An advanced fundamental analysis is available on the Tifia Forex Broker website at tifia.com/analytics
Support levels: 2675.0, 2648.0, 2640.0,
2625.0, 2580.0, 2490.0
Resistance levels: 2693.0, 2700.0, 2710.0
Trading Scenarios
Sell Stop 2670.0. Stop-Loss 2694.0. Objectives 2660.0, 2648.0, 2625.0, 2610.0, 2580.0, 2500.0, 2490.0
Buy Stop 2694.0 Stop-Loss 2670.0. Objectives 2700.0, 2710.0
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