The trend is downward.
On the 4-hour chart, the downward trend is forming as a first wave 1 of (5) of the higher level. Now the fifth wave of the lower level v of 1 is developing, within which the upward correction is forming as a wave (iv) of v. If the assumption is correct, the pair will fall to the level of 0.7300. The level of 0.7448 is critical and stop-loss for this scenario.
Main scenario
Short positions will become relevant during the correction, below the level of 0.7448 with the target at 0.7300. Implementation period: 5–7 days.
Alternative scenario
The breakout and the consolidation of the price above the level of 0.7448 will let the pair grow to the levels of 0.7479–0.7510.
Trade
Scenario
Timeframe Weekly
Recommendation SELL
Entry Point 0.7401
Take Profit 0.7300
Stop Loss 0.7448
Key Levels 0.7300, 0.7448, 0.7479, 0.7510
Alternative scenario
Recommendation BUY STOP
Entry Point 0.7455
Take Profit 0.7479, 0.7510
Stop Loss 0.7435
Key Levels 0.7300, 0.7448, 0.7479, 0.7510
On the 4-hour chart, the downward trend is forming as a first wave 1 of (5) of the higher level. Now the fifth wave of the lower level v of 1 is developing, within which the upward correction is forming as a wave (iv) of v. If the assumption is correct, the pair will fall to the level of 0.7300. The level of 0.7448 is critical and stop-loss for this scenario.
Main scenario
Short positions will become relevant during the correction, below the level of 0.7448 with the target at 0.7300. Implementation period: 5–7 days.
Alternative scenario
The breakout and the consolidation of the price above the level of 0.7448 will let the pair grow to the levels of 0.7479–0.7510.
Trade
Scenario
Timeframe Weekly
Recommendation SELL
Entry Point 0.7401
Take Profit 0.7300
Stop Loss 0.7448
Key Levels 0.7300, 0.7448, 0.7479, 0.7510
Alternative scenario
Recommendation BUY STOP
Entry Point 0.7455
Take Profit 0.7479, 0.7510
Stop Loss 0.7435
Key Levels 0.7300, 0.7448, 0.7479, 0.7510