Overview

Proceeding Today's H4 chart we find that the pair takes downward movement after it has bounced from the resistance level 124.10 yesterday. Currently the pair is testing the support level 121.80, if the pair continues its bearish movement and is able to break the support level 121.80, the upward trend line will indicate the bearish strength providing new sellers signals to reach the support level 121.11. Breakout of this support area and closing 4H below gives strong sign of further bearish movement.

On the other hand, if the pair bounces from the support area and reverses keeping its move above the uptrend line, it will be a good opportunity to buy from few pips above the support area 120.80-121.11 to reach the resistance level 123.00. Then we should wait breaking the resistance level to continue the bullish movement. At present technical indicators provide bearish signals, but as long as the support area is not broken, the upward movement remains also invalidating the bearish outlook. So we should wait more confirmations before making the decison.

Resistance and Support levels 

R3(125.36)

R2(124.10)

R1(123.00)

S1(121.80)

S2(121.11)

S3(119.60)

Trading Recommendations 

According to the previous analysis, we recommend continue selling in case of breaking the support area with TP1 121.00 and TP2 120.05; SL closing 4 hours above the support area .