Concerns over U.S. tax reform are helping to drive the EUR/USD higher on Friday. Senators hit a glitch late Thursday. If they can work out the issues then there may be a vote on the tax overhaul plan later today.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through 1.1961 will signal a resumption of the uptrend. The trend will change to down on a trade through 1.1809.
The EUR/USD is also trading on the strong side of a key Fibonacci level at 1.1886. If this level fails prices could retreat into a series of retracement levels at 1.1837, 1.1823 and 1.1807.
Daily Technical Forecast
The key upside target is a long-term downtrending angle at 1.1942. Overtaking this angle could drive the EUR/USD into the main top at 1.1961. This is a possible trigger point for an acceleration into another downtrending Gann angle at 1.2017.
The inability to overcome 1.1942 will signal the presence of sellers. This could lead to a break into a steep uptrending angle at 1.1889. This angle forms a support cluster with the Fib level at 1.1886. This area held earlier in the session.
If 1.1886 fails as support then the next target angle comes in at 1.1857.
From a longer-term perspective, look for an upside bias on a sustained move over 1.1942 and for a downside bias to develop on a sustained move under 1.1886.