On the 4-hour chart, the fifth wave 5 is forming as a diagonal triangle within the first wave 1 of the higher level. Now the fifth wave v of 5, within which the wave (a) of v has ended, is forming. If the assumption is correct, the price will fall within the wave (b) of v to the levels of 1.2120–1.2070. The level of 1.2323 is critical for this scenario.
Main scenario
Short positions will become relevant during the correction, below the level of 1.2323 with the targets at 1.2120–1.2070.
Alternative scenario
The breakout and the consolidation of the price above the level of 1.2323 will let the pair grow to the level of 1.2400.
Trade
Scenario
Timeframe Weekly Recommendation SELL Entry Point 1.2217 Take Profit 1.2120, 1.2070 Stop Loss 1.2280 Key Levels 1.2070, 1.2120, 1.2323, 1.2400
Alternative scenario
Recommendation BUY STOP Entry Point 1.2330 Take Profit 1.2400 Stop Loss 1.2270 Key Levels 1.2070, 1.2120, 1.2323, 1.2400