Overview
Proceeding from today's H4 chart, the pair has taken an upward movement yesterday after rebounding from the Support level 123.00, but it can't break the Resistance area 124.40-124.75 which causes a bearish move for the pair till reaching the Support level 123.75 and presently the pair is testing it. If the pair is able to break this Support level and manages to break H4 below it, this will denote a strong indicator for the bearish movement enabling the Support level 123.00.
On the other hand, if the pair doesn’t break the Support level and therefore reversing its bearish move, this will provide a good opportunity for buying from this level with 124.40 level target, then we should wait for closing 4H above the Resistance area 124.40-124.75 to continue the bullish view. In case of closing 4H above the Resistance, bullish strength will provide new buy-signals enabling the Resistnace level 125.30. Based on the given H4 chart, the technical indicators provide bearish signals, but as long as the Support level 123.75 is unbroken and the pair doesn't break 4H below, the upward move is still expected and invalidating the bearish outlook. Therefore we should wait for more confirmations before making the decision.

Resistance and Support levels
R3(125.30)
R2(124.75)
R1(124.40)
S1(123.75)
S2(123.00)
S3(122.25)

Trading Recommendations
According to previous analysis, we recommend selling after closing 4H below the Support level 123.75 with TP 123.00; SL closing 4 hours above the Support level might be appropriate.

Performed by Analytical expert: Hossam Soliman Ali
InstaForex Group © 2007-2013