The pair moved lower after breaking below major demand levels around 1.2100 and 1.2000 where historical bottoms were previously established back in July 2012 and June 2010.
EUR/USD bears have already pushed the price slightly below the monthly demand level at 1.0550 (established in January 1997). Bullish recovery was observed shortly after.
April's candlestick came as bullish engulfing one. However, the next monthly candlesticks (May, June, July, and August) reflected the recent bearish rejection which exists around the price level of 1.1450.
In the long term, a projection target is still seen at 0.9450 if a bearish breakdown of the monthly demand level at 1.0550 occurs soon.
On the other hand, a bullish corrective movement towards 1.1500 can take place only if the monthly high at 1.1465 gets breached.
It can be achieved if the current monthly candlestick closes above the weekly high of 1.1465 by the end of the current month (low probability).
Multiple ascending bottoms were established around the levels of 1.0830 and 1.1020. These levels corresponded to the current daily uptrend depicted on the chart.
Continuous bullish pressure has been applied until significant bearish resistance was expressed around the levels of 1.1480 and 1.1700.
The market looked overbought as bulls were pushing the price further beyond the level of 1.1500 (daily supply level).
Hence, bearish movement took place towards the level of 1.1150 (61.8% Fibonacci level), which has been providing evident bullish rejections several successive times (note the recent daily candlesticks during last week's consolidations).
On the other hand, the intraday supply zone of 1.1360-1.1400 provided significant bearish rejection. An intraday sell entry was suggested with T/P levels placed at 1.1150 (achieved) and 1.1050 (yet to come).
Daily persistence below the level of 1.1150 (61.8% Fibonacci level) is needed to expose the next demand level around 1.0980 where the daily uptrend comes to meet the pair.
Conservative traders should wait for a bearish pullback towards the zone of 1.0980-1.1000 (the depicted uptrend line) for a low-risk BUY entry.
S/L should be placed below 1.0950. T/P levels should be placed at 1.1080 and 1.1160.