Overview

The H4 chart demonstrates today that the pair is taking a downward move after its rebound from the Resistance level of 128.40 and currently the pair is testing the Support level of 127.70 trying to break it through in order to continue its bearish move. Given that the pair manages to break this Support level and closes 4H below, we will receive a strong indicator for more bearish signals which will enable the Support level of 127.10 as a level target. Then we should wait for breaking of this Support level to continue the downward move and open the way towards the Support level of 126.45.
On the other hand, if the pair fails to break the Support level of 127.70 and bounces from it, it may reverse the bearish move taking an upward move enabling the Resistance level of 128.40. Then we should wait for breaking this Resistance level to provide new bullish signals. In case the pair is able to break the Resistance level and close 4H above, we will get a bullish strength providing new buy signals enabling the Resistance level of 129.05 as a level target. Based on the given H4 chart, the technical indicators provide sell signals, but as long as the Support level 127.70 is unbroken, the upward move is still expected invalidating the bearish outlook.

Resistance and Support Levels

R3(129.75)
R2(129.05)
R1(128.40)

S1(127.70)
S2(127.10)
S3(126.45)

Trading Recommendations

According to previous analysis, we recommend selling after breaking the Support level 127.70 and closing 4H below with TP 127.20; SL closing 4 hours above the Support level will be appropriate.