As you can see, price fell out of the 1.2379 to 1.2410 (.618 of recent swing) upon the formation of a . This should be not surprise. Since I am not short at the moment, the best I can do is wait for another setup. This can unfold upon a retest of the again (all depends on price action in the zone). Or I can wait for a long setup within or just below the 1.2268 to 1.2220 area (.618 of recent structure). 1.2181 is the reversal zone boundary which offers the most attractive area for a swing trade on the long side.
Keep in mind, considering the context of the bigger picture, swing trade longs have more potential than shorts. It is this context that should govern your profit target choices. Based on the big picture (you can see the my chart on S.C.) this market is poised to go higher. As long as the wave counts stay intact, I will continue to expect more from longs. A break out of this broad consolidation can take this market back toward the 1.3000 area over a number of months.