Overview
Proceeding from today's 4H chart, the pair takes a downward move after its rebound from the Resistance level 137.11 and currently is testing the Support level 136.15. Given that the pair cannot break the Support level and bounces from it, it will continue its upward move to break the Resistance level 137.11 and we will get a good opportunity to buy enabling the Resistance level of 137.85 as the level target. Then we should wait for breaking this Resistance level to continue the upward move and open the way towards the Resistance level of 138.20. On the other hand, if the pair fails to break the Resistance level of 137.10 and bounces from it, it may reverse the bullish move taking a downward move which will enable the Support level of 136.15. Then we should wait for breaking this Support level in order to get new bearish signals. In case the pair is able to break the Support level and closes 4H below, we will get a bearish strength providing new sell signals which will enable the Support level of 135.40 as a level target. Based on the given H4 chart, the technical indicators provide buy signals, but as long as the Resistance level of 137.50 is unbroken, the downward move is still expected invalidating the bullish outlook. Therefore, we should wait for more confirmations before making the decision.
Resistance and Support Levels
R3 (138.20) R2 (137.85) R1 (137.10) S1 (136.15) S2 (135.40) S3 (134.80)
Trading Recommendations
According to the previous analysis, we recommend buying after breaking the Resistance level of 137.10 and closing 4H above with TP 137.75; SL closing 4 hours below the Resistance level will be appropriate.
