Overview

Proceeding from today's H4 chart, the pair is trading between the Support level 1.2080 and the Resistance level 1.2150. Presently the pair is testing the Support level 1.2080 and is trying to break it to continue its bearish move. Given that the pair manages to break this Support level and closes 4H below, we will get a good opportunity for more bearish signals enabling the Support level 1.2040. Then we should wait for breaking this Support level to provide more bearish move. In case of breaking this Support level, we will receive a strong indicator for the bearish move enabling the Support level 1.2000 as a level target.

On the other hand, if the pair fails to break the Support level 1.2080 and bounces from it, this will indicate a strong bullish move which enables the Resistance level 1.2150. Then we should wait for breaking this Resistance level to provide new bullish signals above the Resistance level and enabling the Support level 1.2200 as a level target. Based on the given H4 chart, the technical indicators provide sell signals but as long as the Support level1.2080 is unbroken, the upward move is still expected and invalidating the bearish outlook. Therefore, we should wait for more confirmations before making the decision.

Resistance and Support Levels

R3(1.2285)
R2(1.2200)
R1(1.2150)

S1(1.2080)
S2(1.2040)
S3(1.2000)

Trading Recommendations

According to previous analysis, we recommend selling in case of closing 4H below the Support level 1.2080 with TP 1.2045; SL closing 4 hours above the Support level will be appropriate.