On December 30, a bearish ABC reversal pattern was initiated around 1.1235 which turned the technical outlook into bearish.
Since then, the EURUSD pair has trended-down within the depicted bearish channel until few weeks ago, when extensive bearish decline established a new low around 1.0790 where the EUR/USD pair looked OVERSOLD after such extensive bearish decline.
On February 20, recent signs of bullish recovery were demonstrated around 1.0790 leading to the recent steep bullish movement towards 1.1000 then 1.1175.
The price level of (1.1175) constituted a transient congestion-zone in confluence with the origin of the previously-mentioned ABC pattern.
Temporary consolidation range was demonstrated down to 1.1100-1.1095 where another bullish limb was quickly expressed targetting 1.1235, 1.1360 and recently 1.1480.
Recently, the price-Levels of 1.1235 (KeyZone) and 1.1360 (100% Fibo Expansion) were being breached to the upside until earlier last week when a (123) bearish reversal pattern was initiated around the price level of 1.1480.
This turned the short-term technical outlook for the EURUSD pair into bearish as long as bearish persistence below Keyzone of 1.1235 was maintained on a daily basis.
Any bullish pullback towards 1.1235 was suggested to be considered for bearish rejection and a valid SELL entry.
On the other hand, the mentioned intermediate-term bearish Head & Shoulders pattern has achieved all of its projection target levels.
Currently, the EURUSD pair is retesting the backside of the broken bearish channel around 1.0840 where early signs of bullish rejection are being demonstrated.
The recent bullish engulfing H4 candlestick indicates a high probability bullish pullback at least towards 1.1000 and 1.1060 which should be watched by conservative traders.
Any bullish breakout above 1.1060 enhances further bullish advancement towards 1.1175.
