On the 4-hour chart, the fifth wave 5 of (1) of the higher level is developing. Locally the formation of the downward correction as a fourth wave of the lower level iv of 5 has ended. If the assumption is correct, the pair will grow to the levels of 1.4400–1.4500. The level of 1.3835 is critical for this scenario.
Main scenario
Long positions will become relevant during the correction, above the level of 1.3835 with the targets at 1.4400–1.4500.
Alternative scenario
The breakdown and the consolidation of the price below the level of 1.3835 will let the pair go down to the level of 1.3480.
Trade
Scenario
Timeframe Weekly Recommendation BUY Entry Point 1.3961 Take Profit 1.4400, 1.4500 Stop Loss 1.3815 Key Levels 1.3480, 1.3835, 1.4400, 1.4500
Alternative scenario
Recommendation SELL STOP Entry Point 1.3830 Take Profit 1.3480 Stop Loss 1.3945 Key Levels 1.3480, 1.3835, 1.4400, 1.4500