Monthly Outlook In January 2015, the EUR/USD pair moved below the major demand levels near 1.2100-1.2200 (multiple previous bottoms set in July 2012 and June 2010).
Hence, a long-term bearish target was projected toward 0.9450.
In March 2015, EUR/USD bears challenged the monthly demand level around 1.0500, which had been previously reached in August 1997.
In the longer term, the level of 0.9450 remains a projected target if any monthly candlestick achieves bearish closure below the depicted monthly demand level of 1.0500.
However, the EUR/USD pair has been trapped within the depicted consolidation range (1.0500-1.1450) until the current bullish breakout was executed above 1.1450 and recently above 1.2075.
Another bullish breakout above 1.2075 was expressed on the chart. allowing more time for bullish advancement provided that the current bullish persistence above the price level of 1.2250 is maintained on Monthly basis.
Daily Outlook
The EUR/USD pair remains trapped between the price levels of 1.2200 and 1.2500 until breakout occurs in either directions.
Daily persistence above 1.2470-1.2500 was needed to confirm a recent bullish flag continuation pattern with projected targets around the price level of 1.2750.
However, significant signs of bearish reversal were manifested around the price levels of 1.2400 (backside of the depicted broken uptrend).
This was manifested in the bearish engulfing daily candlestick of March 28. Hence, the EUR/USD pair remains bearish below the price levels of 1.2400 unless obvious daily bullish support is offered around the price level of 1.2200.
The bullish scenario is considered a low probability after the recent bearish breakdown of 1.2300 took place on April 3.
Moreover, the depicted Multiple-Top reversal pattern needs bearish breakdown of the level of 1.2200 to be achieved on a daily basis. Bearish Projection target would be located around 1.2070-1.1990.
The material has been provided by InstaForex Company - www.instaforex.com