Overview

Proceeding from today's H4 chart, the pair takes a downward move after breaking the upward trend line but it bounced again from the Support level 122.90 to take a slightly upward move. Presently the pair is testing the Resistance level 123.30 trying to break it through in order to continue its bullish move. Given that the pair manages to break this Resistance level, it will provide more bullish move and open the way towards the strong Resistance level 123.75. Then we should wait for breaking this Resistance level to continue the bullish move. If the pair is able to break this Resistance level and close 4H above, this will denote a good opportunity for more bullish signals which enable the Resistance level 124.20 as a level target.
On the other hand, if the pair fails to break the Resistance level 123.30 and bounces from it, this will be a strong indicator for a bearish move enabling the Support level 122.90. Then we should wait for breaking this Support level to continue the bearish move. In case the pair manages to break this Support level, this will indicate a bearish strength providing new sell signals and enabling the Support level 122.30 as a level target. Based on the given H4 chart, the technical indicators provide more bearish signals but as long as the Support level 122.90 is unbroken, the upward move is still expected invalidating the bearish outlook.

Resistance and Support Level

R3(124.20)
R2(123.75)
R1(123.30)

S1(122.90)
S2(122.30)
S3(122.00)

Trading Recommendations

According to previous analysis, we recommend selling after breaking the Support level 122.90 with TP1 122.35 and TP2 122.10; SL closing 4 hours above the Support level will be appropriate.