EURUSD hit the 1.19 resistance area on the NFP miss, stalled there, and after coming down somewhat, remains stuck now just above the 1.1850 level.

While some bullish signs are evident on the weekly chart here, the two weekly green candles haven’t completely reversed the head and shoulders pattern yet. Namely, EURUSD needs a firm weekly close above the neckline for the H&S pattern to be definitely canceled (neckline drawn based on weekly closes currently stands near the 1.19 level). Remember, the neckline is a trendline that’s rising, so if EURUSD consolidates for some time here, the neckline will move closer toward 1.20.

That said, the two weekly bull candles certainly challenge the bearish case based on the H&S pattern significantly at this point. If EURUSD doesn’t reverse lower soon, the chances will increase that the H&S pattern has failed.

To the downside, the initial support is at the 1.18 zone. The key weekly support, however, remains at the 1.16 area.