Overview
Proceeding from today's H4 chart, the pair is trading between the Support level 1.2270 and the Resistance level 1.2330. Given that the pair continues its bullish move and manages to break the Resistance level 1.2330 and closes 4H above, we will get a strong indicator for more bullish move which enables the Resistance level 1.2400. Then we should wait for breaking this Resistance level to provide more bullish signals. If the pair is able to break this Resistance level, this will give a good opportunity for the bullish signals enabling the Resistance level 1.2460 as a level target.
On the other hand, if the pair fails to break the Resistance level 1.2330 and bounces from it, this will denote a strong indicator for the bearish move till reaching the Support level 1.2270. Then we should wait for closing 4H below this Support level. In case the pair manages to break this Support level, this will denote a bearish strength providing new sell signals enabling the Support level 1.2220 as a level target. Based on the given H4 chart, the technical indicators provide buy signals, but as long as the Resistance level 1.2330 is unbroken, the downward move is still expected invalidating the bullish outlook. Therefore, we should wait for more confirmations before making this decision.
Resistance and Support Levels
R3(1.2460)
R2(1.2400)
R1(1.2330)
S1(1.2270)
S2(1.2220)
S3(1.2170)
Trading Recommendations
According to previous analysis, we recommend buying after breaking the Resistance level 1.2330 and closing 4H above with TP 1.2390; SL closing 4 hours below the Resistance level will be appropriate.
