The tax reform has been approved by the House of Representatives. Today, the vote in the Senate and again in the House of Representatives, because in the last straight senators want to remove three entries. The market is calm. EUR / USD remains close to 1.1850. USD / JPY tests 113.00. In Tokyo, a minimal increase, the worse mood on Chinese exchanges. Yesterday's moderate drops in the Wall Street indexes are also continued by the futures contracts on the S & P500, which are below 2685 points.

On Wednesday 20th of December, the event calendar is light in important news releases. The global investors will keep an eye on Bank of England Governor Mark Carney speech, Canadian Wholesale Sales data and the US Existing Home Sales and Crude Oil Inventories data.

EUR/USD analysis for 20/12/2017:

The atmosphere of pre-Christmas laziness clearly reflects on the market participants, who in the last few sessions clearly narrowed the observed volatility. Their attention was effectively turned back to US debt, as the yields of 10yr bonds were shot by 6.5 bps. to the unquoted level from the end of October (2.4590%). The representatives of the Fed - Neel Kashkari and Robert Kaplan - faced the problem of a relatively smooth yield curve. Despite a decidedly different approach to the normalization of monetary policy in the US (leaving the status quo versus three rate hikes in 2018), it is necessary to talk about the compliance of FOMC members who, through the prism of a smoothed risk tail, see a growing risk of recession. Not much should happen today as well, because the trading day seems to be very calm.

Let's now take a look at the EUR/USD technical picture at the H4 time frame. The bulls have managed to push the price towards the 61%Fibo back again and currently, the price is hovering at this level. The momentum is quite strong as the indicator is above its fifty level and point to the north, so another leg up is being anticipated.

Market Snapshot: DAX ties to fill the gap

The price of German DAX index has reversed at the technical resistance at the level of 13,336 and currently is trying to fill the gap between the levels of 13,108 - 13,200. If the market will follow with the gap filling scenario, then the next technical support is seen at the level of 12,953.

Market Snapshot: USD/CAD tests the resistance again

The price of USD/CAD has tested the resistance level of 1.2919 for the fourth time, but the momentum is clearly lower than before. So far the market did not make a new high, so the price starts to reverse again. The nearest technical support is seen at the level of 1.2836 and 1.2715.