Overview
Proceeding from today's H4 chart, the pair fails to break the Resistance level 1.2225 and bounces from it, but now the pair is moving outside the bearish channel. Currently the pair is testing the Support level of 1.2175 and is trying to break it. Given that the pair manages to break the Support level and closes 4H below, we will get a strong indicator for the bearish move which enables the Support level of 1.2140. After that we should wait for breaking this Support level and closing 4H below for more bearish-signals till reaching the Support level 1.2100.
On the other side, if the pair fails to break the Support level 1.2175 and bounces from it, this will give a good opportunity for bullish-signals after closing 4H above the Resistance level 1.2225 with TP 1.2315. Then we should wait for testing the Resistance level of 1.2330. If the pair manages to break this Resistance level and closes 4H above, this will provide a bullish strength making new sell-signals available and enabling the Resistance level of 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. Therefore, we should wait for more confirmations before making the decision.
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 only if the pair is able to close 4H below the Support level 1.2175 with TP1 1.2150 and TP2 1.2110; SL closing 4 hours above the Support level might be appropriate.
