Overview
Proceeding from today's H4 chart, the pair takes a bearish move after its rebound from the Resistance level 123.75 till reaching the upward trend line and presently is testing it. If the pair continues its bullish move and manages to break this Resistance 123.15 then the upward trend line, we will be able to get a strong indicator for more bearish signals which enable the Support level of 122.60. After that we should wait for breaking this Resistance level to continue the upward move which provides new sell signals enabling the Support level 122.00 as a level target.
On the other hand, if the pair fails to break the upward trend line and bounces from it, this will denote a good opportunity for the bullish move providing buy signals which enable the Resistance level 123.75. Then we should wait for breaking this Resistance level and closing 4H above to continue the bullish move. In case the pair manages to break the Resistance level it will denote a bullish strength providing new buy signals enabling the Resistance level 124.20 as a level target. Based on the given H4 chart, the technical indicators provide sell signals, but as long as the Support level 123.15 is unbroken the upward move is still expected and invalidating the bearish outlook.
Resistance and Support Levels
R3(124.75)
R2(124.20)
R1(123.75)
S1(123.15)
S2(122.60)
S3(122.00)
Trading Recommendations
According to previous analysis, we recommend selling after breaking the upward trend line and the Support level 123.15, with TP 122.65; SL closing 4 hours above the Support level will be appropriate.
