The trend is downward.
On the 4-hour chart, the downward correction of the higher level is forming as a wave (B). Now the wave C of (B), within which the third wave iii of C of the lower level is forming, is developing. If the assumption is correct, the pair will fall to the levels of 106.74–105.55. The level of 110.50 is critical for this scenario.
Main scenario
Short positions will become relevant during the correction, below the level of 110.50 with the targets at 106.74–105.55.
Alternative scenario
The breakout and the consolidation of the price above the level of 110.50 will let the pair grow to the level of 113.40.
Trade
Scenario
Timeframe Weekly
Recommendation SELL
Entry Point 108.14
Take Profit 106.74, 105.55
Stop Loss 108.75
Key Levels 105.55, 106.74, 110.50, 113.40
Alternative scenario
Recommendation BUY STOP
Entry Point 110.40
Take Profit 113.40
Stop Loss 109.40
Key Levels 105.55, 106.74, 110.50, 113.40
On the 4-hour chart, the downward correction of the higher level is forming as a wave (B). Now the wave C of (B), within which the third wave iii of C of the lower level is forming, is developing. If the assumption is correct, the pair will fall to the levels of 106.74–105.55. The level of 110.50 is critical for this scenario.
Main scenario
Short positions will become relevant during the correction, below the level of 110.50 with the targets at 106.74–105.55.
Alternative scenario
The breakout and the consolidation of the price above the level of 110.50 will let the pair grow to the level of 113.40.
Trade
Scenario
Timeframe Weekly
Recommendation SELL
Entry Point 108.14
Take Profit 106.74, 105.55
Stop Loss 108.75
Key Levels 105.55, 106.74, 110.50, 113.40
Alternative scenario
Recommendation BUY STOP
Entry Point 110.40
Take Profit 113.40
Stop Loss 109.40
Key Levels 105.55, 106.74, 110.50, 113.40