Overview

The H4 chart demonstrates today that the pair has taken a bearish move and managed to break the Support level 127.20. Currently, the pair is approaching the Support level 126.15 trying to break it through to continue its bearish view. 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 125.70 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 125.30 will be open. On the other hand, if the pair fails to break the Support level of 126.15 and bounces from it, it may reverse the bearish move taking an upward move enabling the Resistance level of 126.85 then 127.20. Then we should wait for breaking this Resistance levels to provide new bullish signals. In case the pair is able to break the Resistance level 127.20 and close 4H above, we will get a bullish strength providing new buy signals enabling the Resistance level of 127.80 as a level target. Based on the given H4 chart, the technical indicators provide sell signals, but as long as the Support level of 126.15 is unbroken, the upward move is still expected invalidating the bearish outlook.

Resistance and Support Levels  

R3 (127.80) R2 (127.20) R1 (126.85) S1 (126.15) S2 (125.80) S3 (125.30) 

Trading Recommendations

According to the previous analysis, we recommend selling after breaking the Support level of 126.15 and closing 4H below with TP 125.70; SL closing 4 hours above the Support level will be appropriate.