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.
On October 10, a recent 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 above 1.1520 until a bearish breakdown of 1.1520 occurred again on October 17.
Hence, a descending high was established around 1.1600 enhancing the bearish side of the market.
As for the bearish side of the market to remain dominant, the EUR/USD pair should pursue trading below the price level of 1.1400.
The current bearish breakout has initial targets around 1.1275 and probably 1.1100 if sufficient bearish pressure is demonstrated.
On the other hand, any bullish breakout above 1.1400 should be considered as an early exit signal for sellers.
The material has been provided by InstaForex Company - www.instaforex.com