Overview

Proceeding from today's H4 chart, the pair is starting to take an upward move after its rebound from the support level 122.00. Currently the pair is testing the upper limit of the bearish channel and approaching the Resistance level 122.75 and is trying to break it through to continue its bullish move. Given 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 123.20 as a level target. Then we should wait for breaking this Resistance level to continue the upward move and open the way towards the Resistance level 123.50.
On the other hand, if the pair fails to break the Resistance level 122.75 and bounces from it, the pair may reverse its bullish move taking a downward move enabling the Support level 122.00. Then we should wait for breaking this Support level to provide new bearish signals. In case 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 121.55 as a level target. Based on the given H4 chart, the technical indicators provide buy signals, but as long as the Resistance level 122.75 and the upper limit of the bearish channel are 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(123.50)
R2(123.20)
R1(122.75)

S1(122.00)
S2(121.55)
S3(121.15)

Trading Recommendations

According to the previous analysis, we recommend Buying after breaking the Resistance level 122.75 and closing 4H above with TP 123.15; SL closing 4 hours below the Resistance level will be appropriate.