The trend is downward.
On the 4-hour chart the correction is developing as a wave 2 of (5), shaped as flat. At the moment the wave c of 2 is forming as a momentum, within which the fifth wave of the lower level (v) of c of 2 is developing. If the assumption is correct, the pair will fall to the level of 1.2390. The level of 1.2553 is critical for this scenario.
Main scenario
Short positions will become relevant during the correction, below the level of 1.2553 with the target at 1.2390.
Alternative scenario
The breakout and the consolidation of the price above the level of 1.2553 will let the pair grow to the levels of 1.2792–1.2920.
Trade
Scenario
Timeframe Weekly
Recommendation SELL
Entry Point 1.2504
Take Profit 1.2390
Stop Loss 1.2565
Key Levels 1.2390, 1.2553, 1.2792, 1.2920
Alternative scenario
Recommendation BUY STOP
Entry Point 1.2560
Take Profit 1.2792, 1.2920
Stop Loss 1.2480
Key Levels 1.2390, 1.2553, 1.2792, 1.2920
On the 4-hour chart the correction is developing as a wave 2 of (5), shaped as flat. At the moment the wave c of 2 is forming as a momentum, within which the fifth wave of the lower level (v) of c of 2 is developing. If the assumption is correct, the pair will fall to the level of 1.2390. The level of 1.2553 is critical for this scenario.
Main scenario
Short positions will become relevant during the correction, below the level of 1.2553 with the target at 1.2390.
Alternative scenario
The breakout and the consolidation of the price above the level of 1.2553 will let the pair grow to the levels of 1.2792–1.2920.
Trade
Scenario
Timeframe Weekly
Recommendation SELL
Entry Point 1.2504
Take Profit 1.2390
Stop Loss 1.2565
Key Levels 1.2390, 1.2553, 1.2792, 1.2920
Alternative scenario
Recommendation BUY STOP
Entry Point 1.2560
Take Profit 1.2792, 1.2920
Stop Loss 1.2480
Key Levels 1.2390, 1.2553, 1.2792, 1.2920