Overview
As we can see from today's H4 chart, having broken the Resistance level 122.00, the pair continues its upward movement. Currently the pair is testing the Resistance level of 122.95 and is making attempts to break it through to continue the bullish move. On the condition that the pair manages to break this Resistance level and closes 4H above, we will receive a strong indicator for more bullish signals which enable the Resistance level 123.50 as a level target. After that we should wait for breaking this Resistance level to continue the upward move and open the way towards the Resistance level 124.25.
On the other hand, if the pair fails to break the Resistance level 122.95 and bounces from it, the pair may reverse its bullish move taking a downward move enabling the Support level 122.60. In this case, we should wait for breaking this Support level to get new bearish signals. If the pair is able to break the Support level and close 4H below, we will get a bearish strength providing new sell signals enabling the Support level 122.00 as a level target. Based on the given H4 chart, the technical indicators provide more buy signals, but as long as the Resistance level 122.95 is unbroken, the downward move is still expected invalidating the bullish outlook. Therefore, we should wait for more confirmations before making the decision.
Resistance and Support Levels
R3(124.25)
R2(123.50)
R1(123.95)
S1(122.60)
S2(122.00)
S3(121.55)
Trading Recommendations
According to the previous analysis, we recommend buying after breaking the Resistance level 122.95 and closing 4H above with TP 123.45; SL closing 4 hours below the Support level will be appropriate.
