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 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.
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 above 1.1520 until 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.
The material has been provided by InstaForex Company – www.instaforex.com