On the 4-hour chart, the downward correction of the higher level developed as the wave (2), within which the wave C of (2) formed as a momentum. Now, the development of the third wave (3) is beginning, within which the first wave of the lower level (i) of i of 1 of (3) is forming. If the assumption is correct, the pair will grow to the levels of 1.2650–1.2780. In this scenario, critical stop loss level is 1.2380.
Main scenario
Long positions will become relevant during the correction, above the level of 1.2380 with the targets at 1.2650–1.2780. Implementation period: 7 days and more.
Alternative scenario
The breakout and the consolidation of the price below the level of 1.2380 will let the pair go down to the levels of 1.2300–1.2200.
Scenario
Timeframe Weekly Recommendation BUY Entry Point 1.2533 Take Profit 1.2650, 1.2780 Stop Loss 1.2430 Key Levels 1.2200, 1.2300, 1.2380, 1.2650, 1.2780
Alternative scenario
Recommendation SELL STOP Entry Point 1.2370 Take Profit 1.2300, 1.2200 Stop Loss 1.2405 Key Levels 1.2200, 1.2300, 1.2380, 1.2650, 1.2780