On the 4-hour chart, the fifth wave v of 5 is forming within the first wave (1) of the higher level. Locally the development of the third wave of the lower level (iii) of v has ended, and the downward correction (iv) of v is forming. If the assumption is correct, after the end of the correction, the pair will grow to the levels of 1.4465–1.4570. The level of 1.3970 is critical for this scenario.
Main scenario
Long positions will become relevant during the correction, above the level of 1.3970 with the targets at 1.4465–1.4570.
Alternative scenario
The breakdown and the consolidation of the price below the level of 1.3970 will let the pair go down to the level of 1.3705.
Scenario Timeframe Weekly Recommendation BUY Entry Point 1.4198 Take Profit 1.4465, 1.4570 Stop Loss 1.4110 Key Levels 1.3705, 1.3970, 1.4465, 1.4570 Alternative scenario Recommendation SELL STOP Entry Point 1.3960 Take Profit 1.3705 Stop Loss 1.4045 Key Levels 1.3705, 1.3970, 1.4465, 1.4570