The EUR/USD pair continued to move lower after breaking below the major DEMAND LEVEL at 1.2250 exposing the price levels of 1.2120 and 1.2000 .
Further actions from the ECB regarding QE are still doubted. This is strongly affecting the market leading to the current long-term negative sentiment of the EUR/USD pair.
The pair has lost almost 200 pips since the beginning of 2015, as the market is pushing towards its lowest levels since November 2005.
The market currently looks oversold below the price level of 1.2000 and 1.1900 (prominent psychological SUPPORT & the lower limit of the movement channel on the H4 chart).
Currently, SELLING the EUR/USD pair is considered a high-risk position at such historically low prices.
On the other hand, BUYING the pair is considered a low-risk opportunity but with low probability after such strong bearish trend.
Bullish pullback should be anticipated when looking for better prices to sell the pair off.
The price level of 1.1950 is the recently established SUPPLY level. Short-term SELL positions can be taken there provided that the market keeps trading below the price level of 1.2000.
The material has been provided by InstaForex Company - www.instaforex.com
