The correction is ending, the pair can grow.
On the 4-hour chart, the formation of the correction of the higher level as a wave 2 of (C) is ending, taking the shape of an irregular flat. Now the development of the downward momentum as a wave c of 2 is ending, within which the fifth wave (v) of c is forming. If the assumption is correct, after its end the pair will grow to the level of 113.22 and higher. The level of 110.30 is critical and stop loss for this scenario.
Main scenario
Long positions will become relevant after the rebound from the level of 110.30 with the target at 113.22. Implementation period: 5–7 days.
Alternative scenario
The breakdown and the consolidation of the price below the level of 110.30 will let the pair go down to the levels of 109.35–108.15.
Trade
Scenario
Timeframe Weekly
Recommendation BUY
Entry Point 110.65
Take Profit 113.22
Stop Loss 110.30
Key Levels 108.15, 109.35, 110.30, 113.22
Alternative scenario
Recommendation SELL STOP
Entry Point 110.20
Take Profit 109.35, 108.15
Stop Loss 110.50
Key Levels 108.15, 109.35, 110.30, 113.22
On the 4-hour chart, the formation of the correction of the higher level as a wave 2 of (C) is ending, taking the shape of an irregular flat. Now the development of the downward momentum as a wave c of 2 is ending, within which the fifth wave (v) of c is forming. If the assumption is correct, after its end the pair will grow to the level of 113.22 and higher. The level of 110.30 is critical and stop loss for this scenario.
Main scenario
Long positions will become relevant after the rebound from the level of 110.30 with the target at 113.22. Implementation period: 5–7 days.
Alternative scenario
The breakdown and the consolidation of the price below the level of 110.30 will let the pair go down to the levels of 109.35–108.15.
Trade
Scenario
Timeframe Weekly
Recommendation BUY
Entry Point 110.65
Take Profit 113.22
Stop Loss 110.30
Key Levels 108.15, 109.35, 110.30, 113.22
Alternative scenario
Recommendation SELL STOP
Entry Point 110.20
Take Profit 109.35, 108.15
Stop Loss 110.50
Key Levels 108.15, 109.35, 110.30, 113.22