EUR/USD Price Analysis: Head-and-shoulders confirmation eyed for further losses below 1.1700

• EUR/USD remains pressured around the neckline of bearish chart pattern.
• Nearly oversold RSI conditions challenge further downside.
• Two-month-old support line can please short-term sellers, bulls need clear break of 200-SMA for conviction.

EUR/USD retreats towards the yearly low of 1.1665, recently sidelined around 1.1680, amid an inactive Asian session on Friday.

In doing so, the currency major pair seesaws around the neck-line of a bearish head-and-shoulders chart pattern on the four-hour (4H) play.

Given the nearness of the RSI line to the oversold area, the EUR/USD prices may struggle to confirm the bearish formation.

Hence, a corrective pullback towards a one-week-old horizontal resistance near 1.1705 becomes imminent. However, any further upside will have a bumpy road as 1.1730 and July’s bottom near 1.1750 will challenge additional advances.

In a case where EUR/USD crosses 1.1750, the monthly high and 200-SMA near 1.1800–1805 will be the key hurdle to the north.

Meanwhile, a clear downside below 1.1665 will confirm the head-and-shoulders and highlight the theoretical bearish target of 1.1420.

Though, a downward sloping trend line from June, near 1.1620, followed by the late 2020 bottom and March 2020 high, respectively around 1.1600 and 1.1500, will offer intermediate halts during the fall.

EUR/USD: Four-hour chart

Trend: Corrective pullback expected