Global macro overview for 12/10/2017

Global macro overview for 12/10/2017:

The US Tax Reform might not materialize at all. The reason behind this situation is simple: one vote is still missing in the US Senate. The remaining vore might likely come from Rand Paul who already blocked the disassembly of Obamacare. President Trump has already announced that he will propose a revision of his plan in order to broaden his support, which, of course, may delay the entry into force of the new regulations. As if that was not enough, the US president first withdrew support for his former ally Bob Corker. He then went on Twitter to a keynote address with this influential Republican senator. Subsequent divisions and quarrels in the Republican camp certainly do not help strengthen the fragile support for Trump's administration. For the time being, the most important source in Washington says that the dominant point of view in the party is that the implementation of the reform agenda is a priority and that the dispute should be dismissed as soon as possible. This situation is not helping the US Dollar, which is depreciating across the board.

Let's now take a look at the US Dollar Index technical picture at the H4 time frame. The price dropped towards the important technical support at the level of 92.57 after poor NFP report, dovish FOMC Meeting Minutes and ongoing Trump administration problems in the US Senate. Currently, the market conditions are oversold, so there is a chance for bulls to test the technical resistance at the level of 93.35 from the downside.

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