Technical outlook and chart setups:

As depicted on the 4H view here the following facts should be noted:

1. The single currency pair broke the inner line and bounced off sharply from 119.00 level. At the moment it is strong support.

2. The sloping down trend line has been breached and also the resistance at 126.00 level has been taken out.

3. The pair has retraced back at around 124.00 level, around the backside of the sloping downtrend line. This level is acting as immediate support.

4. Prices are bottoming out around 124.80 region to prepare for the next rally higher up and challenge lined up resistances at 127.00 and 127.90 respectively.

Keeping all the above facts in view, it is highly recommended to remain long and build further around these prices. A push above 126.00 levels shall trigger further buying. Bottom line: Prices are setting up to challenge 127.00/128.00 levels from here on.

Trading recommendations:

Stay long, stop is at 123.00, and target is above 127.90.

Good Luck!