On the 4-hour chart, the fifth wave 5 of (1) of the higher level is developing. Locally the upward momentum is forming as a third wave iii of 5, within which the fifth wave (v) of iii is developing. If the assumption is correct, the pair will grow to the level of 1.4500. The level of 1.3980 is critical for this scenario.
Main scenario
Long positions will become relevant during the correction, above the level of 1.3980 with the target at 1.4500.
Alternative scenario
The breakdown and the consolidation of the price below the level of 1.3980 will let the pair go down to the levels of 1.3810–1.3480.
Trade
Scenario
Timeframe Weekly Recommendation BUY Entry Point 1.4260 Take Profit 1.4500 Stop Loss 1.4180 Key Levels 1.3480, 1.3810, 1.3980, 1.4500
Alternative scenario
Recommendation SELL STOP Entry Point 1.3970 Take Profit 1.3810, 1.3480 Stop Loss 1.4030 Key Levels 1.3480, 1.3810, 1.3980, 1.4500