Approves budget measure
The House cleared a path for a tax bill with budget approval. It gets complicated, but the vote today, cleared a procedural path forward for a GOP tax bill. That bill has yet to be written. The vote today approved a fiscal 2018 budget measure that would make enactment of an eventual tax bill easier in the Senate.
There is work to be done but I guess some potential roadblocks have been cleared with more ahead.
The USD has moved higher.
USDJPY moved above the 114.00 level and further away from 100 hour MA at 113.70, the close from yesterday at 113.72 and the 100 and 200 bar MA on the 5-minute chart (at 113.62-76). Stay above is more bullish.
The EURUSD moved down toward the key support defined by the 100 day MA at 1.1675 and the October low at 1.1668. The August low at 1.1662 is another level of importance. A break below would be more bearish for the pair.
The USDCHF is trading at the highest level since May 15 and is climbing toward the key natural resistance target at pariity (1.0000). The 61.8 % of the move down from the December 2016 high comes in at 0.99905 level. That area should find sellers on the first test. The high just reached 0.9968.
The budget measures are just a start. There is more work to be done, but the dollar is buying into it by taking the greenback higher (at least initially).
