Overview
As we expected yesterday, the pair continues its upward move after breaking the Resistance level 137.85 and, proceeding from today's 4H chart, the pair managed to break the Resistance level and currently is testing the Resistance level 139.00. Given that the pair manages to break the Resistance level 139.00 and close 4H above, it will continue its upward move and we will get a good opportunity to buy enabling the Resistance level of 139.50 as the target level. Then we should wait for breaking this Resistance level to continue the upward move and open the way towards the Resistance level of 140.00. On the other hand, if the pair fails to break the Resistance level of 139.00 and bounces from it, it may reverse the bullish move taking a downward move, which will enable the Support level of 137.85. 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 137.10 as a target level. Based on the given H4 chart, the technical indicators provide buy signals, but as long as the Resistance level of 139.00 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 (140.00) R2 (139.50) R1 (139.00) S1 (137.85) S2 (137.10) S3 (136.15)
Trading Recommendations:
According to the previous analysis, we recommend buying after breaking the Resistance level of 139.00 and closing 4H above with TP 139.40; SL closing 4 hours below the Resistance level will be appropriate.
