EURUSD pair bounced off the area marked with the 23.6% Fibonacci retracement of the large upward wave from last March which coincides with the support at 1.20. The rebound was caused by the dollar's weakness after very mixed data from the US labor market. Moreover, market attention is again focused on the US fiscal package. One can see that the current rebound may be very similar to the one that took place last September, just after breaking out of the upward trend channel (similar to current situation). Nevertheless, it is worth paying attention to the seasonality, which still suggests consolidation in the near future. If today's D1 candle will close above the 1.2040 level may then this may generate a bullish engulfing pattern (similar to September).
EURUSD, D1 interval. Source: xStation5
Daily summary: Peace agreement draft lifts the market
BREAKING: Mixed PMI from US
Significant Weakness Following PMI Releases from France and Germany. ECB Hike Under Threat?
Economic Calendar - Will Weak Asian PMIs Point to Weakness in Europe and the US?