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 900 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.
Conservative traders were suggested to wait for a bullish pullback looking for better prices to SELL the EUR/USD pair off (R1 at 1.1550 and R2 at 1.1700). However, the market did not show enough bullish momentum to reach these levels.
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.
Risky traders could wait for a bullish pullback towards the price level of 1.1260 (recent SUPPLY level) to SHORT the EUR/USD pair at retesting.
Price action should be watched carefully around 1.1110 (weekly low) in order to determine the next destination of the pair.
In case of bearish breakdown of 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
