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.
Since June, the EUR/USD pair has been trapped within narrow consolidation range ( 1.1500 ) and (1.1750).
On September 10, the price level of 1.1500 offered temporary bullish recovery. Quick bullish movement was demonstrated towards the upper limit of the price range (1.1750). However, the EUR/USD bulls failed to pursue towards higher bullish targets.
Instead, evident bearish momentum was being demonstrated on the daily chart.
On October 10, recent bearish decline below 1.1520 found its way towards the price level of 1.1420.
However, Temporary bullish recovery around 1.1430 pushed the EUR/USD pair again above 1.1520 until bearish breakdown of 1.1520 occurred again on October 17.
As for the bearish side of the market to remain dominant, the EUR/USD pair should achieve bearish breakdown below the price level of 1.1400. Next demand level would be located around 1.1275.
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