On the 4-hour chart, the development of the downward correction as a wave 2 of (5), shaped as a flat, has ended. Now the formation of the third wave 3 of (5), within which the first wave of the lower level (i) has formed, and the correction (ii), has begun. If the assumption is correct, the pair will grow to the level of 1.2920. The level of 1.2353 is critical for this scenario.
Main scenario
Long positions will become relevant during the correction, above the level of 1.2353 with the target at 1.2920.
Alternative scenario
The breakdown and the consolidation of the price below the level of 1.2353 will let the pair go down to the level of 1.2057.
Trade
Scenario
Timeframe Weekly Recommendation BUY Entry Point 1.2446 Take Profit 1.2920 Stop Loss 1.2290 Key Levels 1.2057, 1.2353, 1.2920
Alternative scenario
Recommendation SELL STOP Entry Point 1.2350 Take Profit 1.2057 Stop Loss 1.2447 Key Levels 1.2057, 1.2353, 1.2920