Overview
Like we expected yesterday, the pair took a downward trend after it has managed to break the Support level 151.70 and currently is approaching the Support level 150.50. If the pair cannot break this support level and closes 4H above, it may take a bullish trend and reverse its downward move and we will get a good opportunity to buy again till it reaches the Resistance level 151.70 and closes 4H above 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 153.20. On the other hand, if the pair continues its downward move and manages to break the Support level 150.50 and closes 4H below it, it may take a downward trend which will enable the Support level of 149.50. 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 148.50 as a target level. Based on the given H4 chart, the technical indicators provide buy signals, but as long as the Resistance level 150.50 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 (154.00) R2 (153.20) R1 (151.70) S1 (150.50) S2 (149.50) S3 (148.50)
