The EUR/USD pair has reached the weekly Kumo (cloud) support. In the same area around the cloud support, we also find the long-term 38% Fibonacci retracement support. Last week's candle is a bullish reversal hammer candlestick pattern. This reversal will be confirmed on a weekly close above last week's high.
Support is last week's lows at 1.15096. Resistance is at 1.1970. I believe we should at least expect a bounce towards that area if not higher. A weekly close above 1.2050 will be a bullish sign. We believe any pull back should be seen as a buying opportunity. Short-term support is at 1.1616 and resistance at 1.1725. A break above 1.1725 will signal that the next leg higher has started.
