In January 2015, the EUR/USD pair moved below the major demand levels near 1.2100 (multiple previous bottoms set in July 2012 and June 2010). Hence, a long-term bearish target is 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.
Currently, the EUR/USD pair remains trapped within the depicted consolidation range (1.0500-1.1450) until a breakout occurs in either direction.
Any bullish breakout above 1.1450 will probably liberate a quick bullish advance towards 1.1500 and 1.1600.
In January 2017, the previous downtrend reversed when the Head and Shoulders pattern was established around 1.0500. Since then, evident bullish momentum has been expressed on the chart.
The next daily supply level for the EUR/USD pair is located between 1.1400-1.1520 where the price action should be watched for possible bearish rejection.
Recently, the price levels around 1.1280-1.1295 stood as an intraday resistance where recent bearish correction was initiated towards 1.1120.
Evident bullish rejection was expressed around 1.1120 where the current bullish movement towards 1.1400 was initiated.
As anticipated, the ongoing bullish momentum allowed the EUR/USD pair to pursue further advance towards 1.1415-1.1520 (Daily Supply-Zone) where a valid SELL entry can be offered if enough bearish rejection is expressed.
On the other hand, the price zone of 1.1260-1.1130 stands as a prominent DEMAND zone to be watched when bearish pullback occurs.
The material has been provided by InstaForex Company – www.instaforex.com