On the 4-hour chart, the downward momentum developed as a first wave of the higher level 1 of (5). Now the development of the upward correction as a wave 2 of (5) has begun, within which the wave a of 2 is developing. If the assumption is correct, the pair will grow to the levels of 0.7450–0.7587. In this scenario, critical stop loss level is 0.7164.
Main scenario
Long positions will become relevant during the correction, above the level of 0.7164 with the targets at 0.7450–0.7587. Implementation period: 7 days and more.
Alternative scenario
The breakdown and the consolidation of the price below the level of 0.7164 will let the pair go down to the levels of 0.7020–0.6950.
Scenario
Timeframe Weekly Recommendation BUY Entry Point 0.7311 Take Profit 0.7450, 0.7587 Stop Loss 0.7190 Key Levels 0.6950, 0.7020, 0.7164, 0.7450, 0.7587
Alternative scenario
Recommendation SELL STOP Entry Point 0.7160 Take Profit 0.7020, 0.6950 Stop Loss 0.7220 Key Levels 0.6950, 0.7020, 0.7164, 0.7450, 0.7587