The market was 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 at 1.0550 (established on January 1997).
The previous monthly closure reflected negativity on the EUR/USD pair in the long term. However, some bullish rejection is shown in the ongoing monthly candlestick.
Bearish breakdown of the monthly demand level at 1.0550 should be anticipated as long-term breakout target is roughly projected towards the level of 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 around levels of 1.1300), bullish rejection was expressed at 1.0570 (monthly demand level).
Last week, EUR/USD bears failed to defend their recent supply zone at 1.0750-1.0800 and the ascending bottom was established near the same levels.
The nearest bullish target should be located at 1.0980 - 1.1000 (the upper limit of the current wedge-pattern) where a low-risk sell entry can be offered.
