The trend is downward.
On the 4-hour chart, the large downward correction of the higher level is developing as a wave (2) of the higher level. Now the wave A of (2), within which the third wave of the lower level iii of A is developing, is forming. If the assumption is correct, the price will fall to the levels of 1.2170–1.2050. The level of 1.2278 is critical for this scenario.
Main scenario
Short positions will become relevant during the correction, below the level of 1.2278 with the targets at 1.2170–1.2050.
Alternative scenario
The breakout and the consolidation of the price above the level of 1.2278 will let the pair grow to the level of 1.2350.
Trade
Scenario
Timeframe Intraday
Recommendation SELL
Entry Point 1.2234
Take Profit 1.2170, 1.2050
Stop Loss 1.2295
Key Levels 1.2050, 1.2170, 1.2278, 1.2350
Alternative scenario
Recommendation BUY STOP
Entry Point 1.2285
Take Profit 1.2350
Stop Loss 1.2225
Key Levels 1.2050, 1.2170, 1.2278, 1.2350
On the 4-hour chart, the large downward correction of the higher level is developing as a wave (2) of the higher level. Now the wave A of (2), within which the third wave of the lower level iii of A is developing, is forming. If the assumption is correct, the price will fall to the levels of 1.2170–1.2050. The level of 1.2278 is critical for this scenario.
Main scenario
Short positions will become relevant during the correction, below the level of 1.2278 with the targets at 1.2170–1.2050.
Alternative scenario
The breakout and the consolidation of the price above the level of 1.2278 will let the pair grow to the level of 1.2350.
Trade
Scenario
Timeframe Intraday
Recommendation SELL
Entry Point 1.2234
Take Profit 1.2170, 1.2050
Stop Loss 1.2295
Key Levels 1.2050, 1.2170, 1.2278, 1.2350
Alternative scenario
Recommendation BUY STOP
Entry Point 1.2285
Take Profit 1.2350
Stop Loss 1.2225
Key Levels 1.2050, 1.2170, 1.2278, 1.2350