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 the daily chart, the pair has been moving sideways with a slight bearish tendency. Narrow sideway consolidations have been maintained within the depicted daily movement channel since June 2018.
On November 13, the EUR/USD pair demonstrated the recent bullish recovery around 1.1220-1.1250, where the lower limit of the channel as well as the depicted demand zone came to meet the pair.
Bullish fixation above 1.1420 was needed to enhance further bullish movement towards 1.1520. However, the market demonstrated a significant bearish rejection around 1.1420 a few times.
The EUR/USD pair has been trapped between the price levels of 1.1420 and 1.1270 waiting for a breakout since November 5.
This week, based on the recent price action, another bearish engulfing daily candlestick has been demonstrated around the price level of 1.1420. Hence, another bearish pullback towards 1.1270 should be expected soon.
The material has been provided by InstaForex Company - www.instaforex.com