Overview
Proceeding from the today's H4 chart, the pair is still trading between the Support level 140.10 and the Resistance level 141.30 and currently is testing the Resistance level. Given that the pair manages to break this Resistance level and closes 4H above, we will get a good opportunity to buy again till the pair reaches the Resistance level of 142.60 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 143.00. On the other hand, if the pair fails to break the Resistance level of 141.30 and bounces from it, it may reverse the bullish move taking a downward move, which will enable the Support level of 140.10. 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 139.00 as a target level. Based on the given H4 chart, the technical indicators provide buy signals, but as long as the Resistance level of 140.60 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 (143.00) R2 (142.60) R1 (141.30) S1 (140.10) S2 (139.00) S3 (138.00)
Trading Recommendations:
According to the previous analysis, we recommend buying after breaking the Resistance level of 141.30 and closing 4H above with TP 142.00; SL closing 4 hours below the Resistance level will be appropriate.
