Dollar gains on talks of US Tax reforms

The US Dollar Index is roaring again and so are global stocks. On Thursday, US President announced, without giving much details, that his administration will be releasing new Corporate Tax reforms within coming two to three weeks. Based on the promises made during election campaign, his government plans to reduce Corporate Tax from current 35% to anywhere between 15-20%. Global stocks and USD have rallied on this relief premise post-election reaching all time highs, that benefits businesses to prosper in the US (produce and profit within).

.DXY, the dollar index, have reached all time highs post US election. Currently it is trading above key physiological level 100, well within the bullish range as indicated by Ichimoku cloud indicator. (A green cloud indicates bullish trend, while a red bearish. Likewise price above cloud range indicate uptrend, below downtrend while within steady). The next level that .DXY targets will be 101.30 (recent bullish candle on daily chart). Breakout above this level could take it further to 102 before seeing possible reversal to form the right shoulder of Head and Shoulder pattern formation. Downside support exists at 100.08 (yesterday's low), a slide below which could take the index to support at 99.19 (February low).


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