EUR/USD made a strong bearish breakout of the bullish channel marked in brown with a Full Body Long bearish 4H candlestick marked on the chart.
Retesting of the broken channel took place this week failing to fixate within the broken channel again with possibility to be moving withing the newly formed bearish channel marked on the chart.
We should notice also the Head & Shoulders reversal pattern presented on the chart above which is a powerful reversal pattern formed at 38.2% Fibonacci level.
The view for the pair is still bearish as long as it's consolidating within the newly formed bearish channel and below resistance area 1.3215-1.3235
Sellers should take profits at 1.3105, 1.3060 then 1.3000 with possible further targets to be mentioned later.
Bearish reaction towards the lower limit of the broken bullish channel & the upper limit of the bearish channel opens the way to the lower limit of the newly formed bearish channel at 1.3030 initially.
Price action towards 1.3030-1.3000 should be watched in order to determine the next target for the pair, as its break will lead to 1.2950 then 1.2880.
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