The trend is downward.
On the 4-hour chart, the development of upward trend within the first wave (1) of the higher level has ended, and the formation of the downward correction as a wave (2) has begun. Locally the third wave of the lower level iii of A is developing. If the assumption is correct, the pair will fall to the levels of 1.3580–1.3400. The level of 1.4076 is critical for this scenario.
Main scenario
Short positions will become relevant during the correction, below the level of 1.4076 with the targets at 1.3580–1.3400.
Alternative scenario
The breakout and the consolidation of the price above the level of 1.4076 will let the pair grow to the level of 1.4343.
Trade
Scenario
Timeframe Weekly
Recommendation SELL
Entry Point 1.3908
Take Profit 1.3580, 1.3400
Stop Loss 1.4020
Key Levels 1.3400, 1.3580, 1.4076, 1.4343
Alternative scenario
Recommendation BUY STOP
Entry Point 1.4080
Take Profit 1.4343
Stop Loss 1.3990
Key Levels 1.3400, 1.3580, 1.4076, 1.4343
On the 4-hour chart, the development of upward trend within the first wave (1) of the higher level has ended, and the formation of the downward correction as a wave (2) has begun. Locally the third wave of the lower level iii of A is developing. If the assumption is correct, the pair will fall to the levels of 1.3580–1.3400. The level of 1.4076 is critical for this scenario.
Main scenario
Short positions will become relevant during the correction, below the level of 1.4076 with the targets at 1.3580–1.3400.
Alternative scenario
The breakout and the consolidation of the price above the level of 1.4076 will let the pair grow to the level of 1.4343.
Trade
Scenario
Timeframe Weekly
Recommendation SELL
Entry Point 1.3908
Take Profit 1.3580, 1.3400
Stop Loss 1.4020
Key Levels 1.3400, 1.3580, 1.4076, 1.4343
Alternative scenario
Recommendation BUY STOP
Entry Point 1.4080
Take Profit 1.4343
Stop Loss 1.3990
Key Levels 1.3400, 1.3580, 1.4076, 1.4343