Overview
Proceeding from today's H4 chart, the pair takes a downward move after breaking the Support level 145.60 and currently is approaching the Support level 144.15 trying to break it through to break it through. Given that the pair continues its downward trend and manages to break the Support level 144.15 and closes 4H below, we will get a good opportunity to sell again below the Support level till it reaches the Support level of 143.15 as the target level. Then we should wait for breaking this Support level to continue the downward move and open the way towards the Support level of 142.60. On the other hand, if the pair fails to break the Support level of 144.15 and bounces from it, it may reverse the bearish move taking an upward move, which will enable the Resistance level of 145.60 again. Then we should wait for breaking this Resistance level in order to get new bearish signals. In case the pair is able to break the Resistance level and closes 4H above, we will get a bullish strength providing new buy signals which will enable the Resistance level of 146.50 as a target level. Based on the given H4 chart, the technical indicators provide sell signals, but as long as the Support level of 144.15 is unbroken, the upward move is still expected invalidating the bearish outlook. Therefore, we should wait for more confirmations before making the decision.
Resistance and Support levels
R3 (147.05) R2 (146.50) R1 (145.60) S1 (144.15) S2 (143.15) S3 (142.60)
Trading recommendations: According to the previous analysis, we recommend selling after breaking the Support level of 144.15 and closing 4H below with TP 143.40; SL closing 4 hours above the Resistance level will be appropriate.
