The pair can grow.
On the 4-hour chart, the fifth wave 5 of (1) of the higher level is forming. Now the development of the downward correction as a fourth wave iv of 5, taken a shape of a flat (a)(b)(c) with a lengthened wave (c), has ended. If the assumption is correct, the pair will grow to the levels of 1.2540–1.2650. The level of 1.2202 is critical for this scenario.
Main scenario
Long positions will become relevant during the correction, above the level of 1.2202 with the targets at 1.2540–1.2650.
Alternative scenario
The breakdown and the consolidation of the price below the level of 1.2202 will let the pair go down to the level of 1.2125.
Trade
Scenario
Timeframe Weekly
Recommendation BUY
Entry Point 1.2284
Take Profit 1.2540, 1.2650
Stop Loss 1.2200
Key Levels 1.2125, 1.2202, 1.2540, 1.2650
Alternative scenario
Recommendation SELL STOP
Entry Point 1.2190
Take Profit 1.2125
Stop Loss 1.2250
Key Levels 1.2125, 1.2202, 1.2540, 1.2650
On the 4-hour chart, the fifth wave 5 of (1) of the higher level is forming. Now the development of the downward correction as a fourth wave iv of 5, taken a shape of a flat (a)(b)(c) with a lengthened wave (c), has ended. If the assumption is correct, the pair will grow to the levels of 1.2540–1.2650. The level of 1.2202 is critical for this scenario.
Main scenario
Long positions will become relevant during the correction, above the level of 1.2202 with the targets at 1.2540–1.2650.
Alternative scenario
The breakdown and the consolidation of the price below the level of 1.2202 will let the pair go down to the level of 1.2125.
Trade
Scenario
Timeframe Weekly
Recommendation BUY
Entry Point 1.2284
Take Profit 1.2540, 1.2650
Stop Loss 1.2200
Key Levels 1.2125, 1.2202, 1.2540, 1.2650
Alternative scenario
Recommendation SELL STOP
Entry Point 1.2190
Take Profit 1.2125
Stop Loss 1.2250
Key Levels 1.2125, 1.2202, 1.2540, 1.2650