The EUR/USD is bearish but could be developing an inverted head and shoulders pattern.EUR/USD Daily Chart 2/16(click to enlarge)Bears in Charge:- The daily chart shows that the bearish market is still intact.- Note that price is still trading under the 200- and 100-day simple moving averages.- Also, the RSI has been able to tag 30 and hold under 60, a sign of continuing bearish momentum.- Finally, even the latest resistance pivot just above 1.08, was slightly lower than the December resistance pivot, which is slightly under 1.09.Shoulder?- The 2/15 session was a bullish engulfing candle. That is a sign that bulls might be establishing a support pivot just above 1.05.- This support pivot has the potential of becoming the second shoulder of an inverted head and shoulders pattern.- If the above scenario materializes, the EUR/USD could be in a bullish reversal. EUR/USD 4H Chart 2/16(click to enlarge)Falling Channel:- EUR/USD has been trading in a clear downwards channel throughout February. - At the moment, a break above 1.0610 could clear the falling channel resistance.- A break above 1.0633 would add weight to the inverted head and shoulder scenario.- Even if we look forward to this scenario, we should temper our expectations, and limit the bullish outlook for now to the neckline around 1.08.