Overview

The H4 chart demonstrates today that the pair is trading between the Support level of 122.70 and the Resistance level of 123.20. Currently the pair is approaching the Support level of 122.70 and is trying to break it through to continue its bearish move. 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 122.35 as a level target. Then we should wait for breaking this Support level to continue the downward move and open the way towards the Support level of 122.00
On the other hand, if the pair fails to break the Support level of 122.70 and bounces from it, it may reverse bearish move taking an upward direction enabling the Resistance level of 123.20. 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 close 4H above, we will get a bullish strength providing new buy signals enabling the Resistance level of 123.85 as a level target. Based on the given H4 chart, the technical indicators provide sell signals, but as long as the Support level of 122.70 is unbroken, the upward move is still expected invalidating the bearish outlook.

Resistance and Support Levels

R3(124.25)
R2(123.85)
R1(123.20)

S1(122.70)
S2(122.35)
S3(122.00)

Trading Recommendations

According to previous analysis, we recommend selling after breaking the Support level of 122.70 and closing 4H below with TP 122.33; SL closing 4 hours above the Support level will be appropriate.