Overview
Proceeding from today's H4 chart, the pair takes a downward move after its rebound from the Resistance level 1.2330 yesterday. Presently the pair is testing the Support level 1.2170 and is trying to break it to continue its bearish move. Given that the pair manages to break this Support level and closes 4H below, it will denote a good opportunity for more bearish signals enabling the Support level 1.2140. Then we should wait for breaking this Support level to provide more bearish move. In case of breaking this Support level, this will denote a strong indicator for the bearish move enabling the Support level 1.2100 as a level target.
On the other hand, if the pair fails to break the Support level 1.2170 and bounces from it, this will indicate a strong bullish move which enables the Resistance level 1.2270. Then we should wait for breaking this Resistance level to provide new bullish signals above the Resistance level and enabling the Support level 1.2330 as a level target. Based on the given H4 chart, the technical indicators provide sell signals but as long as the Support level 1.2170 is unbroken, 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(1.2425)
R2(1.2330)
R1(1.2270)
S1(1.2170)
S2(1.2140)
S3(1.2100)
Trading Recommendations
According to previous analysis, we recommend selling in case of closing 4H below the Support level 1.2170 with TP 1.2115; SL closing 4 hours above the Support level will be appropriate.