On the daily chart, there are indications that EURUSD may have formed a significant head and shoulders pattern. The neckline of this pattern is likely to be around the 1.07 level, and if the price breaks below it, it could pave the way for a decline towards the 1.02 level. Currently, the price is finding support from the upward crossover of the moving averages. However, if a downward crossover occurs, it would confirm the bearish outlook and potentially trigger additional selling pressure.
On the 4-hour chart, there are indications of a potential king's crown pattern, which shares similarities with the head and shoulders pattern, but with the low of the right shoulder being lower than that of the left shoulder. This pattern suggests a shift in the trend structure, as the price has established a new lower low.
Furthermore, we observe that the price has broken below the upward trendline and subsequently retraced to test it near the 78.6% Fibonacci retracement level before declining once again. Overall, this presents a compelling bearish setup. However, if this setup fails and the price fails to sustain its downward movement, it would indicate strong bullish momentum and could potentially lead to further upside in the future.