The market was pushed lower after breaking below major demand levels around 1.2100 and 1.2000 where historical bottoms were previously hit back in July 2012 and June 2010.
The EUR/USD pair has lost almost 850 pips since the beginning of 2015. Moreover, EUR/USD bears have already pushed the price slightly below the monthly demand level of 1.0550 (established on January 1997).
April's monthly candlestick came as a bullish engulfing one. However, the next monthly candlesticks (May and June) reflect bearish rejection being expressed around 1.1450.
In the long term, a bearish breakout of the monthly demand level at 1.0550 should not be excluded as the long-term projection target is located at 0.9450.
However, a bullish corrective movement towards 1.1500 may be executed ONLY if May's monthly high 1.1465 gets breached.
After such a long bearish rally (which started around the levels of 1.1300), bullish rejection took place at 1.0570 (monthly demand level).
Multiple ascending bottoms were established around the levels of 1.0470, 1.0550, and 1.0850. These levels corresponded to the daily uptrend depicted on the chart.
Further bullish pressure was observed until bearish rejection was applied around 1.1400 (slightly below the depicted daily supply level).
This week, the market opened around the price level of 1.1000 (following a large bearish gap). The price level of 1.1000 corresponds to the daily uptrend. That is why, an ascending bottom is expected to be established there.
As long as bulls keep trading above 1.1150, further bullish advancement should be expected. Initial bullish target would be located at 1.1300 which is a prominent supply level to be watched.
On the other hand, re-closure below the price level of 1.1150 brings the EUR/USD pair again towards 1.1000 where the uptrend can be retested again.