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, Temporary bullish recovery was demonstrated around 1.1300. Hence, another bullish pullback was executed towards 1.1499 (the upper limit of the supply zone) where another descending high was established.
As for the bearish side of the market to remain dominant, the EUR/USD pair should continue trading below the price zone of 1.1300-1.1275. Initial bearish target would located around 1.1100.
Bearish persistence below 1.1275 is mandatory to allow a further decline towards 1.1100.
However, early signs of bullish recovery were demonstrated around 1.1275. This would enhance the bullish side of the market towards 1.1400 again.
Thus, the EUR/USD pair remains trapped within a narrow price range (1.1275-1.1400) until a breakout occurs in either directions.
The material has been provided by InstaForex Company - www.instaforex.com