The pair is in a correction, the fall is possible.
On the 4-hour chart, the fifth wave 5 of (1) of the higher level is forming. Now the development of the third wave of the lower level iii of 5 has ended, and the formation of the downward correction iv of 5 has begun. If the assumption is correct, the price will fall to the levels of 1.2216–1.2118. The level of 1.2493 is critical for this scenario.
Main scenario
Short positions will become relevant during the correction, below the level of 1.2493 with the targets at 1.2216–1.2118.
Alternative scenario
The breakout and the consolidation of the price above the level of 1.2493 will let the pair grow to the levels of 1.2650–1.2700.
Trade
Scenario
Timeframe Weekly
Recommendation SELL
Entry Point 1.2364
Take Profit 1.2216, 1.2118
Stop Loss 1.2425
Key Levels 1.2118, 1.2216, 1.2493, 1.2650, 1.2700
Alternative scenario
Recommendation BUY STOP
Entry Point 1.2500
Take Profit 1.2650, 1.2700
Stop Loss 1.2440
Key Levels 1.2118, 1.2216, 1.2493, 1.2650, 1.2700
On the 4-hour chart, the fifth wave 5 of (1) of the higher level is forming. Now the development of the third wave of the lower level iii of 5 has ended, and the formation of the downward correction iv of 5 has begun. If the assumption is correct, the price will fall to the levels of 1.2216–1.2118. The level of 1.2493 is critical for this scenario.
Main scenario
Short positions will become relevant during the correction, below the level of 1.2493 with the targets at 1.2216–1.2118.
Alternative scenario
The breakout and the consolidation of the price above the level of 1.2493 will let the pair grow to the levels of 1.2650–1.2700.
Trade
Scenario
Timeframe Weekly
Recommendation SELL
Entry Point 1.2364
Take Profit 1.2216, 1.2118
Stop Loss 1.2425
Key Levels 1.2118, 1.2216, 1.2493, 1.2650, 1.2700
Alternative scenario
Recommendation BUY STOP
Entry Point 1.2500
Take Profit 1.2650, 1.2700
Stop Loss 1.2440
Key Levels 1.2118, 1.2216, 1.2493, 1.2650, 1.2700