The market has been pushing lower aggressively after breaking below the major DEMAND LEVELS around 1.2100 and 1.2000 where historical bottoms were previously established back in July 2012 and June 2010.
The EUR/USD pair has lost almost 140 pips since the beginning of 2015. The EUR/USD pair is pushing towards a new twelve-year low around 1.0900.
Theoretical long-term bearish targets are likely to be located near 0.9450, especially after two bearish MONTHLY closures below 1.2000 (January and February's candlesticks).
A bearish Flag pattern was established on the daily chart. The DAILY fixation below the price level of 1.1260 (minor consolidation range) confirmed that bearish pattern.
Last week, evident bearish price action was expressed at the WEEKLY SUPPORT level of 1.1110 (WEEKLY Low).
The obvious bearish breakdown deliberately exposed lower targets around 1.0800.
In case of bearish persistence below 1.1100 (broken weekly low), projection targets for the FLAG pattern would be located around 1.0800 (already reached yesterday) and 1.0500 (yet to come).
On the other hand, conservative traders can wait for a bullish pullback towards 1.1100 (nearest SUPPLY LEVEL) for a low-risk SELL position with Stop loss to be located above 1.1130.
The material has been provided by InstaForex Company - www.instaforex.com
