Overview
Proceeding from today's H4 chart, the pair will take a downward move in case of breaking the Support area 123.00-122.75, as we expected yesterday. Today the pair has already taken a bearish move after the breakout of the Support area and currently is approaching the Support level 122.25. If the pair continues its bearish move and manages to break this Support level and closes 4H below, it will be a strong indicator for more bearish move and open the way towards the Support level 121.80. Then we should wait for breaking this Support level in order to continue the downward move enabling the Support level 121.45 as a level target.
On the other hand, if the pair fails to break the Support level 121.80 and bounces from it, this will provide a good opportunity for bullish-signals enabling the Resistance level 122.60. In case the pair is able to close 4H above the Resistance level, this will denote a bullish strength providing new bullish-signals till reaching the Resistance level 123.00. Then we should wait for breaking this Resistance level to continue the bullish view. Based on the given H4 chart, the technical indicators provide more sell-signals but as long as the Support level 122.25 is unbroken, the upward move is still expected. Therefore, we should wait for more confirmations before making the decision.
Resistance and Support Levels
R3(123.40)
R2(123.00)
R1(122.60)
S1(122.25)
S2(121.80)
S3(121.45)
Trading Recommendations
According to previous analysis, we recommend selling in case of closing 4H below the Support level 122.25 with TP1 122.75 and TP2 122.40; SL closing 4 hours above the Support level will be appropriate.
