On the weekly chart, the EUR/USD pair is demonstrating a high-probability Head and Shoulders reversal pattern where the right shoulder is currently in progress.
Recently, the price level of 1.1500 offered temporary bullish recovery towards 1.1750. The EUR/USD bulls failed to pursue towards higher bullish targets. Instead, a descending high was established around 1.1800.
However, the price level of 1.1520 stood as a prominent demand level where the current bullish pullback towards the price level of 1.1700 was initiated.
Last week, another bullish movement was demonstrated towards the upper limit of the price range (1.1750) which resulted in a daily shooting-star bearish candlestick reflecting early signs of bearish rejection.
On the daily chart, The EUR/USD pair remains trapped below the depicted technical key-levels (1.1750 - 1.1850). As for the bearish side of the market to be dominant, the pair should keep trading below 1.1750.
On the other hand, conservative traders should be expecting further bullish advance towards 1.1850 if the EUR/USD pair resumes its movement above 1.1750 (lower probability).
The material has been provided by InstaForex Company - www.instaforex.com