The correction has ended, the growth of the pair is expected.
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 I has formed, has begun. If the assumption is correct, the pair will grow to the level of 1.2590 after the local correction. The level of 1.2255 is critical for this scenario.
Main scenario
Long positions will become relevant during the correction, above the level of 1.2255 with the target at 1.2590.
Alternative scenario
The breakdown and the consolidation of the price below the level of 1.2255 will let the pair go down to the level of 1.2180.
Trade
Scenario
Timeframe Weekly
Recommendation BUY
Entry Point 1.2414
Take Profit 1.2590
Stop Loss 1.2355
Key Levels 1.2180, 1.2255, 1.2590
Alternative scenario
Recommendation SELL STOP
Entry Point 1.2250
Take Profit 1.2180
Stop Loss 1.2305
Key Levels 1.2180, 1.2255, 1.2590
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 I has formed, has begun. If the assumption is correct, the pair will grow to the level of 1.2590 after the local correction. The level of 1.2255 is critical for this scenario.
Main scenario
Long positions will become relevant during the correction, above the level of 1.2255 with the target at 1.2590.
Alternative scenario
The breakdown and the consolidation of the price below the level of 1.2255 will let the pair go down to the level of 1.2180.
Trade
Scenario
Timeframe Weekly
Recommendation BUY
Entry Point 1.2414
Take Profit 1.2590
Stop Loss 1.2355
Key Levels 1.2180, 1.2255, 1.2590
Alternative scenario
Recommendation SELL STOP
Entry Point 1.2250
Take Profit 1.2180
Stop Loss 1.2305
Key Levels 1.2180, 1.2255, 1.2590