Overview
Proceeding from today's H4 chart, the pair took a strength bullish trend yesterday and managed to trade out of the bearish channel after breaking the Resistance area 142.00-142.50 and currently is testing the Support level 145.85. If the pair bounces from this support level and continues its bullish movement, we will get a good opportunity to buy again above the Support level 145.85 till closing 4H above the Resistance level 147.80 as a 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 148.90. On the other hand, if the pair manages to break the Support level 145.85 and bounces from it, it may continue its downward move, which will enable the Support level of 145.00. 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 144.30 as a target level. Based on the given H4 chart, the technical indicators provide buy signals, but as long as the Resistance level 147.80 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 (149.50) R2 (148.90) R1 (147.80) S1 (145.85) S2 (145.00) S3 (144.30)
