Election`s in Germany, political situation in Spain, Trump's long-awaited tax plan and Yellen's replacement are the main arguments to see an offered euro and bid USD that has led the EURUSD to trade below 1.17 during the Asian session.
In addition, the good manufacturing ISM data published yesterday (60.8 vs 58.8 in August), highest mark since May 2004 with the employment component and paid prices at highs since 2011 confirms the good momentum for the American economy.
The British manufacturing PMI data surprised to the downside, with a severe punishment to the GBP that lost slightly more than 1% against the USD while the Conservative Congress that is being held in Manchester this week.
In Japan the polls continue to be favorable to the current president Abe. We clearly see an asymmetric risk that in the event of a defeat could lead the USDJPY to the 105 zone and in case Abe`s victory going to the 115/116 zone.
As expected, the Bank of Australia has kept unchanged the official rate talking again about the risks of an AUD appreciation for its forecasts.
Light day in terms of macroeconomic data, Eurozone PPI and English construction PMI. Additionally, Powell's statement (14:30) will be analyzed because he is in good position to replace Yellen next year.
BBDXY Daily - Topping with the downside chanel
BBDXY Hourly - First divergences
EURUSD Daily - Good support to 1.16
EURUSD Daily - Ichimoku cloud support is 1.16
EURUSD Short 1.20 - TP 1.1650 - SL 1.1850 (we modifiy the stop loss to protect part of the profit)
Note: This analysis is a personal opinion based on my experience, not a professional signal service. For trading, you must base your decisions on your own criteria
