EUR/USD: fading the rallies, fade Bullard's dovish comments too?

Currently, EUR/USD  is trading at 1.1761, down -0.27% on the day, having posted a daily high at 1.1796 and low at 1.1717. (below daily cloud top at 1.1725 and 200-WMA at 1.1721).

EUR/USD had made a fresh turnaround high but was faded on the previous hourly stick back to the 1.1760's. Fed's Bullard has been an additional catalyst in recent trade, saying that MP appropriate considering low inflation and growth.

There have also been reports by the Dow Jones that tax cuts will not be applied to the start of the year, (a non-retroactive cut in other words), thus a negative to the dollar, although the daily H&S remains the dominant factor on the charts while. 

Fundamentally, markets still prefer to trim the short dollar positions, betting on a December rate hike this year, while otherwise, traders are running out of patience in respect to the ECB's timings of their own adjustments to Q/E. US durable goods was also a positive for the dollar, especially considering the previous that sparked a big EUR/USD rally last month on the disappointment. 

Next up: Fed's Brainard's speeches ahead of Trump's Tax proposal announcements. 

• Donald Trump’s speech Live Indianapolis - Tax Reform Rollout

ECB: Draghi cancels attendance of Bank of England event on Friday - Reuters

EUR/USD levels

Technically, the H&S weigh and EUR/USD has eroded to the downside below the 5-month uptrend at 1.1875 with 1.1662 as the August low in sight. This is confirmed with the RSIs biased to the downside along with long the upper wick on the monthly sticks. Rallies on the wide should struggle at the 20-day MA at 1.1927 with a longer-term downside target at the mid-June high at 1.1296 further out. Nearer term, the cloud top at 1.1725 and the 38.2% Fibo of the June-spet 1.1119-1.2092 rise at 1.1720 is likely to be a strong level of support.