Overview
Proceeding from today's H4 chart, the pair will take a downward move after breaking the Support level 1.2225 and closing below, as we expected yesterday. Today the pair has already taken a bearish movement after breaking the Support level and now keeping its move inside the bearish channel. Presently the pair is testing the Support level 1.2175. In case the pair is able to break the Support level and close 4H below, this will indicate a bearish strength providing new sell-signals enabling the Support level 1.2140 as a level target. Then we should wait for breaking this Support level and closing 4H below to give more bearish-signals till reaching the Support level 1.2100.
On the other hand, if the pair fails to break the Support level 1.2175 and bounces from it, this will denote a good opportunity for bullish-signals after closing 4H above the Resistance level 1.2225 and the upper limit of the bearish channel with TP 1.2315. Then we should wait for testing the Resistance level 1.2330. If the pair manages to break this Resistance level and close 4H above, this will be a strong indicator for more bullish-signals enabling the Resistance level 1.2405 as a level target. Based on the given H4 chart, the technical indicators provide more sell-signals, but as long as the Support level 1.2175 is unbroken, the upward move is still expected invalidating the bearish outlook.
Resistance and Support Levels
R3(1.2405)
R2(1.2330)
R1(1.2225)
S1(1.2175)
S2(1.2140)
S3(1.2100)
Trading Recommendations
According to previous analysis, we recommend selling in case the pair is able to close 4H below the Support level 1.2175 with TP 1.2150; SL closing 4 hours above the Support level will be appropriate.
