The correction is ending.
On the 4-hour chart, the horizontal correction is forming as a fourth wave iv of v within the first wave (1) of the higher level, which is taking the shape of a triangle. Now the wave (d) of iv of the lower level has formed. If the assumption is correct, after the end of the wave (e) of iv, the pair will grow to the levels of 1.2560–1.2650. The level of 1.2215 is critical for this scenario.
Main scenario
Long positions will become relevant after the end of the wave (e) of iv above the level of 1.2215 with the targets at 1.2560–1.2650.
Alternative scenario
The breakdown and the consolidation of the price below the level of 1.2215 will let the pair go down to the levels of 1.2135–1.2040.
Scenario
Timeframe Weekly
Recommendation BUY
Entry Point 1.2373
Take Profit 1.2560, 1.2650
Stop Loss 1.2310
Key Levels 1.2040, 1.2135, 1.2215, 1.2560, 1.2650
Alternative scenario
Recommendation SELL STOP
Entry Point 1.2210
Take Profit 1.2135, 1.2040
Stop Loss 1.2270
Key Levels 1.2040, 1.2135, 1.2215, 1.2560, 1.2650
On the 4-hour chart, the horizontal correction is forming as a fourth wave iv of v within the first wave (1) of the higher level, which is taking the shape of a triangle. Now the wave (d) of iv of the lower level has formed. If the assumption is correct, after the end of the wave (e) of iv, the pair will grow to the levels of 1.2560–1.2650. The level of 1.2215 is critical for this scenario.
Main scenario
Long positions will become relevant after the end of the wave (e) of iv above the level of 1.2215 with the targets at 1.2560–1.2650.
Alternative scenario
The breakdown and the consolidation of the price below the level of 1.2215 will let the pair go down to the levels of 1.2135–1.2040.
Scenario
Timeframe Weekly
Recommendation BUY
Entry Point 1.2373
Take Profit 1.2560, 1.2650
Stop Loss 1.2310
Key Levels 1.2040, 1.2135, 1.2215, 1.2560, 1.2650
Alternative scenario
Recommendation SELL STOP
Entry Point 1.2210
Take Profit 1.2135, 1.2040
Stop Loss 1.2270
Key Levels 1.2040, 1.2135, 1.2215, 1.2560, 1.2650