Overview
Proceeding from today's H4 chart, the pair takes a slightly upward movement after rebounding from the downward trend line, and currently the pair is bouncing from the Resistance level 122.90 in order to reverse its bullish move. If the pair continues its bullish move and manages to break the Resistance level 122.90 and breaks 4H above, this will be a strong indicator for more bullish-signals enabling the Resistance level 123.40 as a level target. Then we should wait till closing above this Resistance level to provide new bullish-signals till reaching the Resistance level of 123.75.
On the other hand, if the pair fails to break the Resistance level 122.90 and closes 4H below, this will indicate a good opportunity to sell below the Resistance level till reaching the Support level 122.25. Then we should wait for breaking out of this Support level to continue the bearish view. In case the pair is able to break the Support level and closes 4H below, this will denote a bearish strength for providing new bearish-signals and enabling the Support level 121.85 as a level target. Based on the given H4 chart, the technical indicators provide bullish-signals, but as long as the Resistance level 122.90 is unbroken, the downward move is still expected and invalidates the bullish outlook.
Resistance and Support Levels
R3(123.75)
R2(123.40)
R1(122.90)
S1(122.25)
S2(121.85)
S3(121.50)
Trading Recommendations
According to previous analysis, we recommend buying if the pair manages to break the Resistance level 122.90 with TP1 123.25 and TP2 123.90; SL closing 4 hours below the Resistance level will be appropriate.
