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. A quick bullish movement was demonstrated towards the upper border of the price range (1.1750). However, the EUR/USD bulls failed to pursue towards higher bullish targets.
Instead, evident bearish momentum was being demonstrated on the daily chart. On October 10, a recent decline below 1.1520 found its way towards the price level of 1.1420.
As for the bearish side of the market to remain dominant, the EUR/USD pair should keep trading below the price level of 1.1520.
However, last week, evident signs of bullish recovery were demonstrated around 1.1430 (Note the full-bullish candlestick of Thursday). This brings the EUR/USD pair again above 1.1520.
Hence, the EUR/USD pair resumes its sideway consolidations inside the depicted consolidation range (1.1520-1.1750) until a bearish breakout occurs later.
The nearest supply level is located around 1.1670 (a potential bullish target).
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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