Overview

Proceeding from today's H4 chart, the pair is trading between the Support level 124.45 and the Resistance level 125.25 and now the pair is testing the Resistance area 125.25-125.65. If the pair continues its bullish movement and manages to break the Resistance area and closes 4H above, this will give a strong indicator for a bullish move enabling the Resistance level 126.30, then we should wait for the breakout of this Resistance level to continue the upward move.

On the other hand, if the pair bounces from the Resistance level and reverses its move closing 4H below the Resistance area 125.65-125.25, it will be a good opportunity for a bearish signals till reaching the Support level 124.45, then we should wait for breaking of the upward trend line before continuing the bearish move. If the pair is able to break the upward trend alone, thiswill denote the bearish strength providing new sell-signals enabling the Support level 123.70.

Based on the given H4 chart, the technical indicators provide buy-signals, but as long as the Resistance area is unbroken the downward move is still expected and invalidating the bullish outlook.

Resistanece and Support levels:

R3(126.30)

R2(125.65)

R1(125.25)

S1(124.45)

S2(123.70)

S3(123.00)

Trading Recommendations 

According to previous analysis, we recommend buying in case of breaking the Resistance area 125.25-125.65 with TP126.30; SL closing 4 hours below the Resistance area may be appropriate.

Performed by Analytical expert: Hossam Soliman Ali
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