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 the daily chart, the pair has been moving sideways with slight bearish tendency. Recent bearish movement is maintained within the depicted daily movement channel.
On November 13, the EUR/USD demonstrated recent 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.
A quick bullish advance was demonstrated towards 1.1420. To be noted that prominent supply zone as well as the previous wave high are located around 1.1420-1.1520.
Bullish fixation above 1.1420 was needed to enhance further bullish movement towards 1.1520. However, the market demonstrated significant bearish rejection around the price level of 1.1420 (shooting-star weekly candlestick).
The EUR/USD pair remains under bearish pressure below 1.1420. A quick decline should be expected towards 1.1270 and probably 1.1150 if sufficient bearish pressure is demonstrated.
The material has been provided by InstaForex Company -
www.instaforex.com