On the 4-hour chart, a downward correction of the higher level developed as the wave (2), within which the wave C of (2) ended. Now, the development of the third wave (3) is beginning, within which the first wave of the lower level i of 1 of (3) was forming. If the assumption is correct, after the end of the correction ii of 1 the pair will grow to the levels of 1.2543–1.2704. In this scenario, critical stop loss level is 1.2060.
Main scenario
Long positions will become relevant during the correction, above the level of 1.2060 with the targets at 1.2543–1.2704. Implementation period: 7 days and more.
Alternative scenario
The breakout and the consolidation of the price below the level of 1.2060 will let the pair go down to the levels of 1.1900–1.1800.
Trade
Scenario
Timeframe Weekly Recommendation BUY Entry Point 1.2188 Take Profit 1.2543, 1.2704 Stop Loss 1.2060 Key Levels 1.1800, 1.1900, 1.2060, 1.2543, 1.2704
Alternative scenario
Recommendation SELL STOP Entry Point 1.2050 Take Profit 1.1900, 1.1800 Stop Loss 1.2110 Key Levels 1.1800, 1.1900, 1.2060, 1.2543, 1.2704