The EUR/USD 60-minute Forex chart is in a Spike and Channel sell climax. While there is a double bottom, the pattern does not have enough bars for a major reversal. As a result, the overnight rally is probably part of a bear flag. Yet, there are gaps between the lows of bars and the moving average. That is a sign of strong bulls. Therefore, the next test down will probably lead to a major trend reversal attempt. If the bulls get a couple of legs up over several days, the targets are prior lower highs.
While the weekly chart last week had a bear follow-through bar after the breakout a week earlier, the 60-minute chart is late in a Spike and Channel bear trend. That is a climax pattern. As a result, the EUR/USD 60-minute chart will probably soon go sideways to up for a few days. Yet, the strength of the selling on the weekly chart makes lower prices likely. Therefore, traders will see any rally this week as a bear flag.
While it is always possible that this sell climax could lead to a sharp reversal up into a bull trend, that would be unusual. Typically, a strong bear trend has to transition into a trading range before the bulls are able to create a bull trend. Hence, the best the bulls will probably get over the next week is a rally in a trading range.