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 1400 pips since the beginning of 2015. The EUR/USD pair is pushing further below a significant twelve-year low around 1.0900 ( September 2003 low ).
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.
The obvious bearish breakdown of the weekly demand level at 1.1100 exposed lower targets around 1.0800.
Bearish persistence below 1.1100 (broken weekly low) enhanced the bearish side of the market.
Projection targets for the Flag pattern would be located around 1.0800 (already breached) 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