Previously, DAILY closure below 1.2360 (the lower limit of the congestion zone) directly exposed price levels around 1.2250.
The EUR/USD pair continued to move lower after breaking below major DEMAND LEVEL at 1.2250 exposing price levels of 1.2120 and 1.2000 .
Fundamentally, the euro sentiment remained negative upon the prospect of more actions from the ECB in the coming weeks regarding QE.
Note that the market is currently pushing further below price level of 1.2000 (prominent psychological SUPPORT, also corresponding to the lower limit of the movement channel).
Price action should be watched carefully at the market closure for further decisions as the market currently looks oversold.
As anticipated previously, an obvious 4H break below 1.2150 exposed the full-range breakout projection target around 1.2000.
Following such a strong bearish swing, the market should be looking for a considerable demand level to pause around.
The lower limit of the current movement channel has been breached after the bearish gap that occurred at the market opening this Monday.
Further price action should be considered as the current price levels haven't been visited since May 2010.
Trade recommendations :
Risky traders should now be looking for LONG positions around these historical low prices after such quick bearish decline that started around 1.2550.
However, conservative traders should be looking for SHORT positions in such strong bearish momentum. Bullish pull-back towards higher price levels are needed.
Low-risk SELL entries can be taken around price level 1.2250 where a recent SUPPLY zone is located.
The material has been provided by InstaForex Company - www.instaforex.com
