Overview

The H4 chart demonstrates today that the pair takes a downward move after its failure to break the Resistance level of 129.75. Currently, the pair is trading between the Support level of 128.40 and the Resistance level of 129.05. Given that the pair continues its bearish move and 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 127.80 as a level target. Then we should wait for breaking of this Support level to continue the downward move and the way towards the Support level of 127.10 will be open.
On the other hand, if the pair fails to break the Support level of 128.40 and bounces from it, it may reverse the bearish move taking an upward move enabling the Resistance level of 129.05 again. 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 closes 4H above, we will get a bullish strength providing new buy signals enabling the Resistance level of 129.75 as a level target. Based on the given H4 chart, the technical indicators provide sell signals, but as long as the Support level of 128.40 is unbroken, the upward move is still expected invalidating the bearish outlook.

Resistance and Support Levels

R3 (130.00)
R2 (129.75)
R1 (129.05)
S1 (128.40)
S2 (127.80)
S3 (127.10)

Trading Recommendations

According to the previous analysis, we recommend selling after breaking the Support level of 128.40 and closing 4H below with TP 127.75; SL closing 4 hours above the Support level will be appropriate.