EUR/USD starts new day above MAs

Despite increasingly positive stance on the Dollar, the Euro continued to inch higher yesterday, being driven by the minor head and shoulders pattern.

As the currency rate managed to end previous trading session above the combination of 55-, 100- and 200-hour SMAs as well as the weekly PP, they are expected to provide support for further advance.

Accordingly, the main target for the pair would an intersection of the monthly PP and the upper trend-line of a senior descending channel. Whether the exchange rate will manage to break this barrier will heavily depend on result of today’s vote in the Congress.

An adoption of tax reform might push the rate down to the 38.2% Fibonacci retracement level at 1.1760, while the opposite result is likely to elevate the rate straight to the last week high at 1.1845.

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