Overview

The H4 chart demonstrates today that the pair takes a downward move after its rebound from the upper limit of the bearish channel. Currently the pair is testing the Support level 121.55 and trying to break it through to continue its bearish move. Given that the pair manages to break this Support level and closes 4H below, we will receive a strong indicator for more bearish signals which will enable the Support level 121.15 as a level target. Then we should wait for breaking this Support level to continue the downward move and open the way towards the Support level 120.90.
On the other hand, if the pair fails to break the Support level 121.55 and bounces from it, the pair may reverse its bearish move taking an upward move enabling the Resistance level 122.00. Then we should wait for breaking this Resistance level to provide new bullish signals. In case the pair is able to break the Resistance level and close 4H above, we will get a bullish strength providing new buy signals enabling the Resistance level 122.70 as a level target. Based on the given H4 chart, the technical indicators provide sell signals, but as long as the Support level 121.55 is unbroken, the upward move is still expected invalidating the bearish outlook.

Resistance and Support Levels

R3(123.20)
R2(122.60)
R1(122.00)

S1(121.55)
S2(121.15)
S3(120.90)

Trading Recommendations

According to previous analysis, we recommend selling after breaking the Support level 121.55 and closing 4H below with TP 122.20; SL closing 4 hours above the Support level will be appropriate.