Overview
As we expected yesterday, breaking the Resistance level 147.50 the pair gets the opportunity for a bullish movement, which enables the Resistance level 147.95. Proceeding from the today's H4 chart the Resistance level has already been broken and the pair takes an upward move and presently is testing the Resistance level 147.95. If the pair is able to break the Resistance level this will indicate continuation of its bullish move till the Resistance level 148.25 is reached. Then we should wait for breaking through this level to continue the bullish movement. On the other hand, if the pair cannot break the Resistance level 147.95 and reverses its bullish move, we should wait for closing 4-hour chart below the Support level 146.50. If the pair is able to break it and closes 4H below it, this will provide a good opportunity to sell till the upward trend line is reached and it is tested. The breakout of this line means strength of bears providing new sell-signal with the 145.60 level target. Based on today's H4 chart, technical indicators provide bullish signals, but as long as the Resistance level 147.95 is unbroken, the downward trend is still expected, also invalidating the bullish outlook.
Resistance and Support levels: R3 (148.75) R2 (148.25) R1 (147.95) S1 (146.50) S2 (145.60) S3 (145.00)
Trading recommendations According to previous analysis we recommend buying after breaking the Resistance level 147.95 with TP 148.30; SL closing 4-hour chart below the Support level 146.50.
