Overview
Proceeding from today's 4H chart, the pair takes a slightly downward move after its rebound from the Resistance level 129.75. But it is still trading between the Support level 128.40 and the Resistance level 129.05. Given that the pair takes a bullish move and manages to break the Resistance level 129.05, we will receive a strong indicator for more bullish signals which will enable the Resistance level of 129.75 as the level target. Then we should wait for breaking this Resistance level to continue the upward move and open the way towards the Resistance level of 130.00.
On the other hand, if the pair fails to break the Resistance level of 129.05 and bounces from it, it may reverse the bullish move taking a downward move, which will enable the Support level of 128.40. Then we should wait for breaking this Support level in order to get new bearish signals. In case the pair is able to break the Support level and closes 4H below, we will get a bearish strength providing new sell signals which will enable the Support level of 127.80 as a level target. Based on the given H4 chart, the technical indicators provide buy signals, but as long as the Resistance level of 129.05 is unbroken, the downward move is still expected invalidating the bullish outlook. Therefore, we should wait for more confirmations before making the decision.
Resistance and Support Levels
R3 (130.00) R2 (129.75) R1 (129.05) S1 (128.40) S2 (127.80) S3 (127.20)
Trading Recommendations
According to the previous analysis, we recommend buying after breaking the Resistance level of 129.05 and closing 4H above with TP 129.55; SL closing 4 hours below the Resistance level will be appropriate.