On the 4-hour chart, the downward correction of the higher level is developing as a wave (2). Locally the wave A of (2) has formed, and the upward correction of the lower level is developing as a wave B of (2), within which the wave b of B has ended. If the assumption is correct, the pair will grow to the level of 1.3480 within the wave c of B. The level of 1.3202 is critical and stop loss for this scenario.
Main scenario
Long positions will become relevant above the level of 1.3202 with the target at 1.3480. Implementation period: 5–7 days.
Alternative scenario
The breakdown and the consolidation of the price below the level of 1.3202 will let the pair go down to the level of 1.2926.
Trade
Scenario
Timeframe Weekly Recommendation BUY STOP Entry Point 1.3243 Take Profit 1.3480 Stop Loss 1.3202 Key Levels 1.2926, 1.3202, 1.3480
Alternative scenario
Recommendation SELL STOP Entry Point 1.3195 Take Profit 1.2926 Stop Loss 1.3285 Key Levels 1.2926, 1.3202, 1.3480