Overview 

As we expected yesterday, after having broken through the support area 123.10-122.25 the pair began strong bearish movement. Considering today's 4H chart, the pair bounces for a few pips due to a slightl correction but it still expected to continue its bearish movement to reach the support level 121.55. The breakdown of this support area and closure 4H below it indicates bearish strength providing new sellers signals and opening the way towards the support area 121.00 keeping its movement inside the bearish channel.Therefore we should wait the breakthrough of this level to continue bearish signal.

On the other hand, if the pair faces the lower boundary of its bearish channel and touches it, there will be a strong indicator for the upward movement and a good opportunity to buy with 122.66 levlel target.  We should wait till the resistance level 122.85 is broken in order to provide a new sellers signals with 124.00 level target. Technical indicators provide bearish signals but as long as the support area is unbroken, the upward trend is still expected to invalidate the bearish outlook.

Therefore, proceeding from the chart, we should wait more confirmations before making the decision .

Resistances and Supports levels

R3(125.30)

R2(124.10)

R1(122.85)

S1(121.55)

S2(121.00)

S3(120.25)

Trading recommendations 

According to previous analysis we still expect more bearish move in case of breaking the support area, so we recommend selling with TP1 121.10 and TP2 120.35 ; SL 121.72 .