25.04.201711:04 Forex Analysis & Reviews: Global macro analysis for 25/04/2017

Global macro analysis for 25/04/2017:

Interesting news from the USA has hit the financial newsfeeds. According to Wall Street Journal magazine, Donald Trump plans to reduce the corporate tax from 35% to 15%. According to sources, Trump is keen to present large tax cuts to the public and does not take too much into account the budgetary implications. The official announcement of the plans is to take place on Wednesday. Moreover, there are also unconfirmed signs that the administration is ready to postpone until the end of the year plans to secure a budget for building a wall on the border with Mexico for the benefit of the Democrats and Republicans. In conclusion, market participants will finally have a chance to get into some more details about at least a part of the changes promised by Trump during the presidential campaign.

Let's now take a look at the US Dollar index technical picture on the H4 time frame. After the French presidential elections, there is still an unfilled weekend gap between the levels of 99.15 - 99.72. Nevertheless, the market is trading in oversold conditions and the momentum oscillator indicates a possible bullish divergence on the H4 timeframe. This is why the chances for an upside relief rally are quite high and the target for bulls would be at the level of 99.71 minimum.