On the 4-hour chart, the first wave of the higher level 1 of (3) formed as a wedge, and a downward correction is developing as the wave 2 of (3). Now the wave c of 2 is forming. If the assumption is correct, the pair will fall to the levels of 1.2890–1.2773. In this scenario, critical stop loss level is 1.3131.
Main scenario
Short positions will become relevant during the correction, below the level of 1.3131 with the targets at 1.2890–1.2773. Implementation period: 5–7 days.
Alternative scenario
The breakout and the consolidation of the price above the level of 1.3131 will let the pair grow to the levels of 1.3429–1.3626.
Scenario
Timeframe Weekly Recommendation SELL Entry Point 1.2984 Take Profit 1.2890, 1.2773 Stop Loss 1.3015 Key Levels 1.2773, 1.2890, 1.3131, 1.3429, 1.3626
Alternative scenario
Recommendation BUY STOP Entry Point 1.3135 Take Profit 1.3429, 1.3626 Stop Loss 1.3035 Key Levels 1.2773, 1.2890, 1.3131, 1.3429, 1.3626