Overview
Proceeding from today's H4 chart, the pair fails again in order to break the Support level 1.2220 and is still trading above it. Currently the pair is trading between the Resistance level 1.2330 and the Support level 1.2220. If the pair continues its bearish move and manages to break the Support level 1.2220 and closes 4H below, we will receive a strong indicator for more bearish move which enables the Support level 1.2170. Then we should wait for breaking this Support level to continue the bearish signals. In case the pair manages to break this Support level and closes 4H below, this will give us more bearish signals enabling the Support level 1.2140 as a level target.
On the other side, if the pair fails to break the Support level 1.2220 and bounces from it, this will provide a good opportunity for the bullish signals till reaching the Resistance level 1.2330. Then we should wait for breaking the Resistance level to continue the bullish signals. Given that the pair manages to break this Resistance level and closes 4H above, this will denote a bullish strength providing new buy signals enabling the Resistance level 1.2405 as a level target. Based on the given H4 chart, the technical indicators provide more bearish signals, but as long as the Support level 1.2220 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(1.2460)
R2(1.2405)
R1(1.2330)
S1(1.2225)
S2(1.2170)
S3(1.2140)
Trading Recommendations
According to previous analysis, we recommend selling after breaking the Support level 1.2220 and closing 4H below with TP 1.2175; SL closing 4 hours above the Support level will be appropriate.
