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 1,500 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 had a negative impact on the EUR/USD pair. However, April's monthly candlestick came as a bullish engulfing candle as depicted on the chart.
This probably hinders further bearish decline for some time. On the other hand, it enhances a bullish corrective movement towards 1.1500 and 1.1600 if a daily closure persists above the level of 1.1250.
In the long term, bearish breakdown of the monthly demand level of 1.0550 should not be excluded as the 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 allowed the market to fall dramatically shortly afterwards.
After such a long bearish rally (which started around the levels of 1.1300), bullish rejection was expressed at 1.0570 (monthly demand level).
The price zone between 1.1050 and 1.1150 failed to neutralize the ongoing bullish momentum.
Moreover, a bullish continuation pattern with an ascending bottom was previously established around the level of 1.0650.
This applied a strong bullish pressure over the prominent supply levels at 1.1150 and 1.1240. Thus, bears failed to pause the ongoing bullish momentum of the EUR/USD pair.
The current daily candlestick closure should be monitored for further price analysis as daily persistence above the price levels of 1.1150 and 1.1250 enhances the bullish side of the market. This exposes the nearest daily supply level at 1.1500 for quick retesting.
On the other hand, the failure to close above 1.1250 indicates further sideway movement without significant bullish momentum.
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