On the weekly chart, the EUR/USD pair is demonstrating a highly probable 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 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 necessary to enhance further bullish movement towards 1.1520. However, the market demonstrated a significant bearish rejection around 1.1420 a few times.
Recently, the EUR/USD pair has been trapped between the price levels of 1.1420 and 1.1270 waiting for a breakout since November 5.
On Friday, based on the recent price action, there was another bearish engulfing daily candlestick around the price level of 1.1420. This enhances the bearish trend of the market towards 1.1270 in the short term.
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