Overview

Proceeding from today's H4 chart, the pair takes an upward move after its rebound from the Support level 1.2040. Presently the pair is testing the Resistance level 1.2150 and is trying to break it to continue its bullish move. Given that the pair manages to break this Resistance level and closes 4H above, we will get a good opportunity for more bullish signals enabling the Resistance level 1.2200. Then we should wait for breaking this Resistance level to provide more bullish move. In case of breaking this Resistance level, we will receive a strong indicator for the bullish move enabling the Resistance level 1.2295 as a level target.

On the other hand, if the pair fails to break the Resistance level 1.2150 and bounces from it, this will indicate a strong bearish move which enables the Support level 1.2100. Then we should wait for breaking this Support level to provide new bearish signals below the Support level 1.2100 and enabling the Support level 1.2040 as a level target. Based on the given H4 chart, the technical indicators provide more buy signals but as long as the Resistance level 1.2150 is unbroken, the downward move is still expected and invalidating the bullish outlook. Therefore, we should wait for more confirmations before making the decision.

Resistance and Support Levels

R3(1.2295)
R2(1.2200)
R1(1.2150)

S1(1.2100)
S2(1.2040)
S3(1.2000)

Trading Recommendations

According to previous analysis, we recommend buying in case of closing 4H above the Resistance level 1.2150 with TP 1.2195; SL closing 4 hours below the Resistance level will be appropriate.