Current trend

On the 4-hour chart, the instrument shows a sideways dynamic, but the general downward trend is still maintained. If the sellers manage to decline the rate below the level of 1.28073, the price can retest the support of 1.27932. The area of 1.27932-1.27869 seems a key zone for the sellers. A decisive breakdown of 1.27869 is needed to indicate the downward trend resumption. In this case, the next targets of sellers will be the level of 1.27563.
Alternative scenario.
The rebound from the level of 1.28045 and the pair’s sustained move above 1.28319 will be a signal for an upward correction formation. In this case, the key target of the correction will be the area 1.28479-1.28575. Should prices continue growing above 1.28575 marks, the level 1.28784 might try activating an upward rebound. The downward trend maintains, which the technical indicators confirm. Bollinger Bands are diverging on the background of bearish momentum. MACD histogram is in the negative zone keeping a signal for the opening of sell positions. Stochastic is on the border of oversold and is pointed downwards.

Support and resistance

Support levels: 1.28073, 1.27932, 1.27869, 1.27563.
Resistance levels: 1.28319, 1.28479, 1.28575.

Trading recommendations

Short positions can be opened below the level of 1.27869 with the target at around 1.27563 and stop-loss 1.27971.
Long positions can be opened above the level of 1.28319 with the target at around 1.28575 and stop-loss 1.28233.

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