EURUSD bounced off the important support and generated a possible demand signal
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
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