The market has been pushing lower aggressively 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.

This month, EUR/USD bears have been challenging historical lows that were established back in 2005 and 2003. Some bullish recovery is finally being witnessed this week.

The pair has lost almost 800 pips since the beginning of 2015. Moreover, theoretical long-term bearish targets would be located near 0.9450, especially after the monthly breakout below 1.2000 was confirmed.

On the daily chart, the market looks oversold below the price level of 1.2000 and 1.1900 (prominent psychological SUPPORT and the lower limit of the movement channel on the daily chart).

As it was suggested in previous articles, conservative traders should be waiting for a bullish pullback looking for better prices to SELL the pair off.

Fundamentally, the pair is showing little movement ahead of the FOMC statement which will be released later.

The federal reserve will be spotted today with the release of policy statement by the end of a two-day meeting.

The price zone of 1.1540-1.1600 is a recently established SUPPLY zone. Short-term SELL positions can be taken there. Stop loss should be placed slightly above the price level of 1.1680.

BUYING the pair is considered a low-risk opportunity following such a steep decline, especially after the yesterday's candlestick (bullish engulfing). Bulls should be conservative with their targets as the pair is in a frank long-term downtrend.