The pair may fall. On the 4-hour chart, a local downward correction of the higher level develops as the wave 2 of (C). Now, the wave c of 2 is forming, within which the wave of the lower level (v) of c is developing. If the assumption is correct, the pair will fall to the levels of 111.82–111.35. In this scenario, critical stop loss level is 112.64.
Main scenario
Short positions will become relevant during the correction, below the level of 112.64 with the targets at 111.82–111.35. Implementation period: 3–5 days
Alternative scenario
The breakout and the consolidation of the price above the level of 112.64 will let the pair grow to the level of 113.68.
Scenario
| Timeframe | Intraday |
| Recommendation | SELL |
| Entry Point | 111.96 |
| Take Profit | 111.35 |
| Stop Loss | 112.30 |
| Key Levels | 111.35, 111.82, 112.64, 113.68 |
Alternative scenario
| Recommendation | BUY STOP |
| Entry Point | 112.70 |
| Take Profit | 113.68 |
| Stop Loss | 112.10 |
| Key Levels | 111.35, 111.82, 112.64, 113.68 |