Source: Forex Analysis
On the weekly chart, the EUR/USD pair is demonstrating a Head and Shoulders pattern where the right shoulder is currently in progress.
Recently, the price level of 1.1500 offered temporary bullish recovery towards 1.1830. The EUR/USD bulls failed to pursue towards higher bullish targets. Instead, a descending high was established around 1.1800.
On the daily chart, for the bearish side of the market to be dominant, the pair needs quick bearish decline below 1.1500.
However, the price level of 1.1520 stood as a prominent demand level where the current bullish pullback was initiated.
The EUR/USD pair is currently trapped between the depicted technical levels (1.1750 – 1.1500).
Another bullish movement is expected towards the upper limit of the price range (1.1750) where bearish rejection should be anticipated.
On the other hand, any bullish breakout above 1.1750 will allow further bullish advance towards 1.1850.
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