On the daily chart, the pair remained above the support level of 128.00, near the lows of August, September and mid-November. The result of testing this level has not yet been summed up: on the one hand. the stability of the pair and the absence of closures below 128.00, the lower shadows of candles, the absence of a continuation of the decline after the formation of a wide-range candle on November 26 are bullish signals. On the other hand. the pair has not overcome the nearest resistance at 128.70 and this level remains resistance. The bullish divergence of the lows of the pair and the MACD histogram remains, which strengthens the support at 128.00. Confirmation of this signal may be overcoming the level of 128.70. According to directional movement indicators, the downward trend remains strong: the excess of DM- over DM+ is large at a high ADX level, the MACD histogram is in the negative zone, the MACD line has a negative slope.
On the four-hour chart, the formation of a double bottom at 127.50 is possible. The maximum on December 1 was higher than the previous one, and this broke the sequence of decline, which may be a bullish signal. If we consider the range of 127.50-128.70, then a decline to the lower limit is more likely. Fixing above 128.70 would make a reversal preferable.
Resistance level: 128.70; 129.70
Support levels: 128.00; 127.50