The market was aggressively pushed lower 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 lost almost 1600 pips since the beginning of 2015. Moreover, EUR/USD bears have already pushed the market slightly below the monthly demand level of 1.0550 (established on January 1997).
The recent monthly closure remains negative for the EUR/USD pair in the long term.
Bearish breakdown of the monthly demand level at 1.0550 should be anticipated as theoretical long-term targets are projected towards 0.9450.
The obvious bearish breakout of the weekly demand level at 1.1100 enhanced the bearish side of the market exposing lower targets.
Full projection targets of the Flag pattern were successfully reached at 1.0800 and 1.0500.
After such a long bearish rally (which started off 1.1300) bullish rejection was expressed at 1.0570 (monthly demand level).
Shortly after, the EUR/USD pair failed to keep pushing above the depicted uptrend line. Hence, a double-top reversal pattern was executed around 1.1030.
Daily persistence below the level of 1.0750 (neck-line) confirmed the reversal pattern, thus extending the projection target for the EUR/USD pair towards the level of 1.0330.
On Friday, a bullish pullback towards 1.0750-1.0770 (neckline of the double-top pattern) took place. Hence, a valid sell position was offered around this price zone. Stop Loss should be set as DAILY closure above 1.0850.
