On the 4-hour chart, the downward correction of the higher level is developing as a wave (2). Locally the wave and of (2) has formed, and the upward correction of the lower level is developing as a wave B of (2), within which the wave a of B is forming. If the assumption is correct, the pair will grow to the levels of 1.3472–1.3645. The level of 1.3202 is critical and stop loss for this scenario.
Main scenario
Long positions will become relevant during the correction, above the level of 1.3202 with the targets at 1.3472–1.3645. Implementation period: 5–7 days.
Alternative scenario
The breakdown and the consolidation of the price below the level of 1.3202 will let the pair go down to the level of 1.3100.
Trade
Scenario
Timeframe Weekly Recommendation BUY Entry Point 1.3318 Take Profit 1.3472, 1.3645 Stop Loss 1.3202 Key Levels 1.3100, 1.3202, 1.3472, 1.3645
Alternative scenario
Recommendation SELL STOP Entry Point 1.3195 Take Profit 1.3100 Stop Loss 1.3255 Key Levels 1.3100, 1.3202, 1.3472, 1.3645