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 pair has lost almost 800 pips since the beginning of 2015. Moreover, theoretical long-term bearish targets would be located near 0.9450, especially after the FULL bearish MONTHLY below 1.2000 (January’s monthly candlestick).
On the daily chart the market looked oversold below the price levels of 1.2000 and 1.1900 (prominent psychological SUPPORT).
As mentioned in the previous articles, conservative traders should be waiting for a bullish pullback looking for better prices to SELL the pair off (R1 at 1.1550 and R2 at 1.1700).
The price zone of 1.1440-1.1470 is a recently established SUPPLY zone on the H4 chart (the upper limit of a newly-established consolidation zone ).
Short-term SELL positions can be taken there. Stop loss should be placed slightly above the price level of 1.1530 (the recent high).
Moreover, risky traders should note that DAILY fixation again below 1.1260 (recent DEMAND level, lower limit of the H4 consolidation zone ) indicates a bearish visit towards the WEEKLY low around 1.1110.
The material has been provided by InstaForex Company – www.instaforex.com