On the 4-hour chart, the downward momentum of the higher level A of (2) formed, and the development of the upward correction as a wave B of (2) begun. Now the wave b of B is developing, within which the wave (b) of b of the lower level is forming. If the assumption is correct, after the end of the wave the pair will fall to the levels of 1.1515–1.1460. In this scenario, critical stop loss level is 1.1733.
Main scenario
Short positions will become relevant below the level of 1.1733 with the targets at 1.1515–1.1460. Implementation period: 5–7 days.
Alternative scenario
The breakout and the consolidation of the price above the level of 1.1733 will let the pair grow to the levels of 1.1787–1.1940.
Trade
Scenario
Timeframe Weekly Recommendation SELL Entry Point 1.1626 Take Profit 1.1515, 1.1460 Stop Loss 1.1733 Key Levels 1.1515, 1.1733, 1.1787, 1.1940
Alternative scenario
Recommendation BUY STOP Entry Point 1.1740 Take Profit 1.1787, 1.1940 Stop Loss 1.1710 Key Levels 1.1515, 1.1733, 1.1787, 1.1940