Something big is about to happen to EUR/USD. On Friday, the price reached a supper important, long-term support (green).
EUR/USD is in the perfect place to see a bullish reversal and a further weakness of the American dollar. Why? Well, the price reached an ultimate support created by the tops from August and September 2017 and January 2018. It is the first time that we are testing this support this year. The first reaction here, on Friday, was bullish: the price created a hammer, which is a strong buy signal.
If I have to be honest with You, I would wait a little bit more with my trading decision. Yes, candle from Friday is nice but this one from today, not so much. Instead of climbing higher, the price is testing the support again. What it tells us is that the demand is weak, at least for now. What is more, EUR/USD is still under the mid-term down trendline (black). In my opinion, for the legitimate buy signal we would have to wait for the price closing above that resistance. As long as we are below the black line, we cannot think about a legitimate buy signal.
