EUR/USD was bearish to end 2016, making a low on the year around 1.0440 before turning the calendar to 2017. Now in the new year, EUR/USD rallied from that low to tag the 1.08 handle. As we can see on the daily chart, it retreated from this common resistance and is now hovering above 1.05. EUR/USD Daily Chart 2/23(click to enlarge)Price Bottom Scenario:- This week, price is testing the 1.05 pivot. This is a support/resistance pivot, AND if an inverted head and shoulders is forming, this would be the shoulder level.- However, a break below 1.05 could invalidate this inverted head and shoulder scenario.- Now if we are going with the bullish outlook, we should anticipate resistance around 1.08. Practically, that might mean scaling out or closing a long position around 1.08. If we don't close out the position, it would be because of the potential bullish breakout that could extend EUR/USD towards 1.10 or higher. But we would be way ahead of ourselves at the moment to expect the 1.10 target. Instead we should respect the 1.08 neckline until it breaks.