The trend is downward.
On the 4-hour chart, the downward trend is forming as a first wave 1 of (5) of the higher level. Now the fifth wave of the lower level v of 1 is developing, within which the downward momentum is forming as a wave (iii) of v. If the assumption is correct, the pair will fall to the levels of 0.7400–0.7341. The level of 0.7512 is critical and stop loss for this scenario.
Main scenario
Short positions will become relevant during the correction, below the level of 0.7512 with the targets at 0.7400–0.7341. Implementation period: 5–7 days.
Alternative scenario
The breakout and the consolidation of the price above the level of 0.7512 will let the pair grow to the level of 0.7608.
Trade
Scenario
Timeframe Weekly
Recommendation SELL
Entry Point 0.7456
Take Profit 0.7400, 0.7341
Stop Loss 0.7512
Key Levels 0.7341, 0.7400, 0.7512, 0.7608
Alternative scenario
Recommendation BUY STOP
Entry Point 0.7520
Take Profit 0.7608
Stop Loss 0.7460
Key Levels 0.7341, 0.7400, 0.7512, 0.7608
On the 4-hour chart, the downward trend is forming as a first wave 1 of (5) of the higher level. Now the fifth wave of the lower level v of 1 is developing, within which the downward momentum is forming as a wave (iii) of v. If the assumption is correct, the pair will fall to the levels of 0.7400–0.7341. The level of 0.7512 is critical and stop loss for this scenario.
Main scenario
Short positions will become relevant during the correction, below the level of 0.7512 with the targets at 0.7400–0.7341. Implementation period: 5–7 days.
Alternative scenario
The breakout and the consolidation of the price above the level of 0.7512 will let the pair grow to the level of 0.7608.
Trade
Scenario
Timeframe Weekly
Recommendation SELL
Entry Point 0.7456
Take Profit 0.7400, 0.7341
Stop Loss 0.7512
Key Levels 0.7341, 0.7400, 0.7512, 0.7608
Alternative scenario
Recommendation BUY STOP
Entry Point 0.7520
Take Profit 0.7608
Stop Loss 0.7460
Key Levels 0.7341, 0.7400, 0.7512, 0.7608