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 local correction (iv) of v has ended. If the assumption is correct, the pair will fall to the levels of 1.1900–1.1800. In this scenario, critical stop loss level is 1.2180.
Main scenario
Short positions will become relevant during the correction, below the level of 1.2180 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 1.2180 will let the pair grow to the levels of 1.2300–1.2366.
Trade
Scenario
Timeframe Weekly Recommendation SELL Entry Point 1.2124 Take Profit 1.1900, 1.1800 Stop Loss 1.2180 Key Levels 1.1800, 1.1900, 1.2180, 1.2300, 1.2366
Alternative scenario
Recommendation BUY STOP Entry Point 1.2185 Take Profit 1.2300, 1.2366 Stop Loss 1.2125 Key Levels 1.1800, 1.1900, 1.2180, 1.2300, 1.2366