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.
Recently, the price level of 1.1500 offered temporary bullish recovery towards 1.1830. The EUR/USD bulls failed to pursue towards higher bullish targets. Instead, a descending high was established around 1.1800.
On the daily chart, the EUR/USD pair remains trapped below the depicted technical levels (1.1750 - 1.1850). As for the bearish side of the market to be dominant, the pair should keep trading below 1.1750.
However, the price level of 1.1520 stood as a prominent demand level where the current bullish pullback towards the price level of 1.1700 was initiated.
Another Bullish movement was expected towards the upper limit of the price range (1.1750) which failed to demonstrate any kind of bearish rejection. That's why, another bullish breakout above 1.1750 was demonstrated yesterday.
As expected, conservative traders should be expecting further bullish advancement towards 1.1850 provided that the EUR/USD pair keeps trading above 1.1750.
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