Overview

Like we expected yesterday, the pair will take an upward move after touching the meeting point between the upward trend line and the Support level 123.00. Proceeding from today's H4 chart, the pair already has taken upward move after its rebound from the upward trend line and currently is trading between the Resistance level 124.45 and the Support level 123.70 keeping its move above the upward trend line. If the pair continues its bullish move and manages to break the Resistance level 124.45, this will provide a strong indicator for bullish signals enabling the Resistance level 124.80.
Then we should wait for the breaking of this level to continue the bullish view till reaching the Resistance level 125.25.
On the other hand, if the pair reverses its movement and breaks the Support level 123.70 and then the upward line, this will give us a good opportunity to sell from this level with the 123.00 level target, then we should wait breaking this level to continue the bearish move, if the pair is able to puncture this level, this will indicate the strength of the bearish trend providing new sell-signals till reaching 122.25 Support level.
Based on the chart, the technical indicators provide bullish signals, but as long as the Resistance level 124.45 is unbroken, the downward move is still expected and invalidating the bullish outlook.

Resistance and Support levels:

R3(125.25)

R2(124.80)

R1(124.45)

S1(123.70)

S2(123.00)

S3(122.25)

Trading Recommendations 

According to previous analysis we recommend buying after breaking of the Resistance area 124.45-124.80 with TP 125.25; SL breaking 4 hours below the Resistance level may be appropriate.

Performed by Analytical expert: Hossam Soliman Ali
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