On the 4-hour chart, a downward correction of the higher level developed as the wave (2), within which the wave C of (2) formed as a wedge. Now, the development of the third wave (3) has begun, within which the entry momentum of the lower level (i) of i of 1 of (3) has formed, and the correction (ii) of I is developing. If the assumption is correct, after the end of the correction the pair will grow to the level of 1.3175. In this scenario, critical stop loss level is 1.2396.
Main scenario
Long positions will become relevant during the correction, above the level of 1.2396 with the target at 1.3175. Implementation period: 7 days and more.
Alternative scenario
The breakdown and the consolidation of the price below the level of 1.2396 will let the pair go down to the levels of 1.2300–1.2150.
Scenario
Timeframe Weekly Recommendation BUY Entry Point 1.2753 Take Profit 1.3175 Stop Loss 1.2396 Key Levels 1.2150, 1.2300, 1.2396, 1.3175
Alternative scenario
Recommendation SELL STOP Entry Point 1.2390 Take Profit 1.2300, 1.2150 Stop Loss 1.2450 Key Levels 1.2150, 1.2300, 1.2396, 1.3175