In January 2015, the EUR/USD pair moved below the major demand levels near 1.2100 and 1.2000 where historical bottoms were previously set in July 2012 and June 2010. Hence, a long-term bearish target is projected towards 0.9450.
In March 2015, EUR/USD bears challenged the monthly demand level of 1.0570, which was previously reached in August 1997.
Later, in April 2015, a strong bullish recovery was observed around the mentioned demand level.
The April candlestick came as bullish engulfing one. However, next monthly candlesticks (September, October, and November) reflected strong bearish rejection in the area around 1.1400.
December's candlestick came as bullish engulfing one allowing the current bullish pullback to take place towards 1.1370.
The zone of 1.1350-1.1400 remains the key Supply Zone to be watched during the current bullish pullback. As we expected, recent bearish rejection is currently being manifested.
The level of 0.9450 will remain a long-term bearish target in case the current monthly candlestick closes below the depicted demand level of 1.0570.
In October 2015, the Daily Supply Zone of 1.1360-1.1400 produced significant bearish pressure shortly after the EUR/USD pair spiked above the level of 1.1500 (daily supply level).
A bearish breakout of the depicted uptrend was performed later on October 23. This enhanced a long-term bearish scenario with targets at 1.0800 and 1.0600.
In November 2015, daily persistence below the level of 1.0800 (prominent key level) ensured enough bearish momentum towards 1.0550 (monthly demand level) where the most recent bullish swing was initiated.
During the last few weeks, a consolidation range extending between 1.1000 and 1.0800 was established on the daily chart. On February 3, a bullish breakout was executed above this consolidation range.
That is why, a quick bullish movement took place towards the zone of 1.1350-1.1450 where previous daily bottoms and the backside of the broken uptrend are depicted on the daily chart.
On February 12, a strong bearish engulfing daily candlestick was expressed around the mentioned supply level. Hence, a quick bearish decline towards 1.1000 was expected. This bearish decline is being manifested on the daily chart.
The levels of 1.1000 and 1.0800 will remain important demand levels to be watched for significant bullish rejection. Otherwise, a quick bearish decline towards 1.0550 will be imminent.
A valid buy entry can be offered near the current levels (the upper limit of the broken consolidation range) around 1.1000. S/L should be set as a daily candlestick closure below 1.0950.