Overview

Proceeding from today's 4H chart, the pair is still stabilized below the Resistance level 129.50 and fails to break it through. Currently the pair is trading between the Support level 129.05 and the Resistance level 129.50. Given that the pair continues its bullish move and manages to break this Resistance level and closes 4H above, we will receive a strong indicator for more bullish signals which will enable the Resistance level of 130.00 as the level target. Then we should wait for breaking this Resistance level to continue the upward move and open the way towards the Resistance level of 130.35.On the other hand, if the pair fails to break the Resistance level of 129.50 and bounces from it, it may reverse the bullish move taking a downward move which will enable the Support level of 129.05. Then we should wait for breaking this Support level in order to get new bearish signals. In case the pair is able to break the Support level and closes 4H below, we will get a bearish strength providing new sell signals which will enable the Support level of 128.40 as a level target. Based on the given H4 chart, the technical indicators provide buy signals, but as long as the Resistance level of 129.50 is unbroken, the downward move is still expected invalidating the bullish outlook. Therefore, we should wait for more confirmations before making the decision.

Resistance and Support Levels 

R3 (130.35) R2 (130.00) R1 (129.50) S1 (129.05) S2 (128.40) S3 (127.80)

Trading Recommendations

According to the previous analysis, we recommend buying after breaking the Resistance level of 129.50 and closing 4H above with TP 130.05; SL closing 4 hours below the Resistance level will be appropriate.