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 950 pips since the beginning of 2015.
Theoretical long-term bearish targets would be located near 0.9450, especially after the FULL bearish MONTHLY below 1.2000 (January's candlestick).
A bearish breakout below 1.2000 and 1.1900 (prominent psychological SUPPORT) allowed a quick bearish decline towards 1.1100 to take place few days later.
A bearish Flag pattern was established on the daily chart. DAILY fixation below the price level of 1.1260 (recent bottom) confirmed that bearish pattern.
The price action should have been watched around 1.1110 (WEEKLY Low) as bearish breakdown directly exposes lower targets initially around 1.0800.
In case of bearish persistence below 1.1100, estimated long-term projection targets for the flag pattern would be located around 1.0800 and 1.0500.
The material has been provided by InstaForex Company - www.instaforex.com
