On the 4-hour chart, the first wave of the higher level 1 of (3) formed as a wedge, and the downward correction developed as the wave 2 of (3). Now the formation of the third wave 3 of (3) has begun, within which the first entry wave of the lower level i of 3 is developing. If the assumption is correct, the pair will grow to the levels of 1.3271–1.3377. In this scenario, critical stop loss level is 1.2985.
Main scenario
Long positions will become relevant during the correction, above the level of 1.2985 with the targets at 1.3271–1.3377. Implementation period: 7 days and more.
Alternative scenario
The breakout and the consolidation of the price below the level of 1.2985 will let the pair go down to the levels of 1.2773–1.2400.
Scenario
Timeframe Weekly Recommendation BUY Entry Point 1.3122 Take Profit 1.3271, 1.3377 Stop Loss 1.2985 Key Levels 1.2400, 1.2773, 1.2985, 1.3271, 1.3377
Alternative scenario
Recommendation SELL STOP Entry Point 1.2980 Take Profit 1.2773, 1.2400 Stop Loss 1.3055 Key Levels 1.2400, 1.2773, 1.2985, 1.3271, 1.3377