Main scenario: consider short positions from corrections below the level of 1.2342 with a target of 1.1600 – 1.1489 once a correction is completed.
Alternative scenario: breakout and consolidation above the level of 1.2342 will allow the pair to continue rising to the levels of 1.2500 – 1.2600.
Analysis: Daily time frame: presumably, the first wave of larger degree 1 of (3) formed, and a downside correction is forming as wave 2 of (3). Apparently, wave a of 2 formed and ascending wave b of 2 is developing on the H4 time frame. Supposedly, wave of smaller degree (a) of b formed on the H1 time frame. If this assumption is correct, the pair may be expected to continue falling to the levels of 1.1600 – 1.1489 once wave (b) of 2 is completed. The level of 1.2342 is critical in this scenario. Its breakout will allow the pair to continue rising to the levels of 1.2500 – 1.2600.
Price chart of EURUSD in real time mode
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