EUR/USD has been bullish in 2017, rallying from about 1.3650 to almost 1.21 by September. However, we are now seeing the USD strengthen across the board, and $EURUSD has started a bearish correction phase.EUR/USD Daily Chart(click to enlarge)Head and Shoulders:- The daily chart shows a market that has been bullish but has now completed a price top.- Note that in the completed head and shoulders pattern, the "HEAD" is another H&S pattern. This "fractal nature of the pattern was another clue that the market is topping.Pullback; Bullish Swing vs. Bearish Mode: - The overall trend in EUR/USD in unclear. - It has choppy and bearish since the Financial Crisis in 2007-2008.- But it has been sideways since 2015. - 2017 was the year of a bullish breakout. And now there is a pending bearish swing.- So, we are basically looking at a bullish breakout versus a prevailing bearish bias.Fibonacci Retracement:- Because the long-term trend is unclear, we might want to treat the current bearish correction relative to the 2017 swing.- I think we should limit the bearish outlook to 1.10, the 61.8% retracement level.- Note that this is also close to the middle of the broken consolidation range. EUR/USD Weekly Chart(click to enlarge)