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 (recent bearish engulfing weekly candlestick).
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.
Instead, evident bearish momentum was being demonstrated on the daily chart. Recent bearish decline took place below 1.1520 (the lower limit of the consolidation range) 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, this week, early signs of bullish recovery were demonstrated around 1.1430. This brought the EUR/USD pair again above 1.1520.
This brings the EUR/USD pair back inside the depicted consolidation range (1.1520-1.1750) for more sideway consolidations until bearish breakout occurs later.
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