On the 4-hour chart, a downward correction developed as the wave 2 of (3). Now, the development of the third wave 3 of (3) is beginning, within which the first entry wave of the lower level (i) of i of 3 is forming. If the assumption is correct, the pair will grow to the levels of 1.3178–1.3377. In this scenario, critical stop loss level is 1.2508.
Main scenario
Long positions will become relevant during the correction, above the level of 1.2508 with the targets at 1.3178–1.3377. Implementation period: 7 days and more.
Alternative scenario
The breakout and the consolidation of the price below the level of 1.2508 will let the pair go down to the level of 1.2241.
Scenario
Timeframe Weekly Recommendation BUY Entry Point 1.2750 Take Profit 1.3178, 1.3377 Stop Loss 1.2508 Key Levels 1.2241, 1.2508, 1.3178, 1.3377
Alternative scenario
Recommendation SELL STOP Entry Point 1.2500 Take Profit 1.2241 Stop Loss 1.2590 Key Levels 1.2241, 1.2508, 1.3178, 1.3377