The pair can decrease within the correction.
On the 4-hour chart, the development of the downward correction as a wave 2 of (5) has ended. Now the formation of the third wave 3 of (5), within which the entering momentum of the lower level i of 3 has formed, has begun. If the assumption is correct, the pair will fall to the levels of 1.2470–1.2420 within the second wave ii. The level of 1.2684 is critical for this scenario.
Main scenario
Short positions will become relevant below the level of 1.2684 with the targets at 1.2470–1.2420.
Alternative scenario
The breakout and the consolidation of the price above the level of 1.2684 will let the pair grow to the level of 1.2922.
Trade
Scenario
Timeframe Weekly
Recommendation SELL
Entry Point 1.2576
Take Profit 1.2470, 1.2420
Stop Loss 1.2640
Key Levels 1.2420, 1.2470, 1.2684, 1.2922
Alternative scenario
Recommendation BUY STOP
Entry Point 1.2690
Take Profit 1.2922
Stop Loss 1.2610
Key Levels 1.2420, 1.2470, 1.2684, 1.2922
On the 4-hour chart, the development of the downward correction as a wave 2 of (5) has ended. Now the formation of the third wave 3 of (5), within which the entering momentum of the lower level i of 3 has formed, has begun. If the assumption is correct, the pair will fall to the levels of 1.2470–1.2420 within the second wave ii. The level of 1.2684 is critical for this scenario.
Main scenario
Short positions will become relevant below the level of 1.2684 with the targets at 1.2470–1.2420.
Alternative scenario
The breakout and the consolidation of the price above the level of 1.2684 will let the pair grow to the level of 1.2922.
Trade
Scenario
Timeframe Weekly
Recommendation SELL
Entry Point 1.2576
Take Profit 1.2470, 1.2420
Stop Loss 1.2640
Key Levels 1.2420, 1.2470, 1.2684, 1.2922
Alternative scenario
Recommendation BUY STOP
Entry Point 1.2690
Take Profit 1.2922
Stop Loss 1.2610
Key Levels 1.2420, 1.2470, 1.2684, 1.2922