Overview 

As we expected yesterday, a break down of the support area 121.55 -122.00 is a strong indicator fo the downward movement and possibility to break the bearish channel. Considering today's 4H chart, the pair takes a strong downside movement and is able to break the lower boundary of its bearish channel trading outside it.

Currently the pair is testing the support level 119.60 trying to break it. If the pair is able to break the support level and close 4H below, this will indicate the bearish strength providing new sellers signal enabling to reach the support level 119.00. Therefore, we should wait the breakthrough of this level in order to continue the bearish signal.

On the other hand, if the pair bounces from the support area and reverses to its bearish movement, this will indicate high bullish strength giving a good opportunity to buy with TP 120.80 level then 121.45 as second target.Therefore, proceeding from the chart , we should wait more confirmations before making the decision .

Resistance and Support levels

R3(122.50)

R2(121.50)

R1(121.00)

S1(119.60)

S2(119.00)

S3(118.50)

Trading Recommendations 

According to the previous analysis, we recommend buying with TP1 119.00 but we should wait more confirmations before making the decision .