On the 4-hour chart, a downward correction of the higher level develops as the wave (2), within which the wave C of (2) forms. Now, the fifth wave v of C is developing, within which the third wave of the lower level (iii) of v has formed, and the local correction (iv) of v is ending. If the assumption is correct, after the end of the correction, the pair will fall to the levels of 1.1900–1.1800. In this scenario, critical stop loss level is 1.2229.
Main scenario
Short positions will become relevant during the correction, below the level of 1.2229 with the targets at 1.1900–1.1800. Implementation period: 7 days and more.
Alternative scenario
The breakout and the consolidation of the price above the level of 1.2229 will let the pair grow to the levels of 1.2360–1.2554.
Trade
Scenario
Timeframe Weekly Recommendation SELL Entry Point 1.2167 Take Profit 1.1900, 1.1800 Stop Loss 1.2229 Key Levels 1.1800, 1.1900, 1.2229, 1.2360, 1.2554
Alternative scenario
Recommendation BUY STOP Entry Point 1.2235 Take Profit 1.2360, 1.2554 Stop Loss 1.2175 Key Levels 1.1800, 1.1900, 1.2229, 1.2360, 1.2554