On Monday, the pair made another attempt to break above the reversing level of 18.35 ([6/8]), but again failed and returned to the central Murrey channel. Currently, quotes are testing the central level of 17.96 ([4/8]), the breakdown of which will give the prospect of further downward correction to 17.73 ([3/8], the lower line of Bollinger Bands) and 17.57 ([2/8]).
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On the H4 chart, the uptrend is still in force; the downward correction is observed. The instrument is trading around the center line of Bollinger Bands; the indicator cloud is narrowing, and a lateral trend is likely to form in the short term. MACD histogram is in the positive zone preserving a steady signal for opening long positions. Stochastic is in the neutral zone, and the lines of the oscillator are directed downwards. The sell signal remains.
The pair is falling.
On the daily chart, the third wave of the higher level (3) develops, within which the wave 1 of (3) forms. Now, the third wave of the lower level (iii) of 1 is developing, within which a local correction has ended as the wave iv of (iii), and the wave v of (iii) is forming. If the assumption is correct, the pair will fall to the levels of 0.9323–0.9170. In this scenario, critical stop loss level is 0.9530.
The pair may grow.
On the 4-hour chart, the first wave of the higher level (1) of C develops, within which the wave 3 of (1) formed. Now, a local correction has developed as the fourth wave 4 of (1), shaped as a triangle, and the formation of the fifth wave 5 of (1) has started. If the assumption is correct, the pair will grow to the levels of 0.7200–0.7400. In this scenario, critical stop loss level is 0.6831.