On the 4-hour chart, the fifth wave 5 of (1) of the higher level is forming. Now the development of the downward correction as a fourth wave iv of 5, which has taken a form of a flat (a)(b)(c), has ended. If the assumption is correct, the price will grow to the levels of 1.2650–1.2700. The level of 1.2311 is critical for this scenario.
Main scenario
Long positions will become relevant during the correction, above the level of 1.2311 with the targets at 1.2650–1.2700.
Alternative scenario
The breakdown and the consolidation of the price below the level of 1.2311 will let the pair go down to the levels of 1.2220–1.2125.
Trade
Scenario
Timeframe Weekly Recommendation BUY Entry Point 1.2393 Take Profit 1.2650, 1.2700 Stop Loss 1.2310 Key Levels 1.2125, 1.2220, 1.2311, 1.2650, 1.2700
Alternative scenario
Recommendation SELL STOP Entry Point 1.2300 Take Profit 1.2220, 1.2125 Stop Loss 1.2360 Key Levels 1.2125, 1.2220, 1.2311, 1.2650, 1.2700