With a high at 114.69 wave iii of 3 might be over just shy of our ideal target area between 114.99 - 115.11. The decline from 114.69 does have impulsive characters (five wave decline), which tells us, that a zig-zag or a combination of corrections is under way. Therefore we will be looking for a correction that is no less than 199 pips large, that would mean a correction, which needs to break below 112.70. We think that the first possible target for this correction is at 112.27, That said we expect a minor rally up to 114.10 short term before the next decline down to our target at 112.27. Once this wave iv of 3 correction is over, we should see the next powerful rally higher towards 117.36.
We didn't see a break above resistance at 1.6155, but instead support at 1.6075 was taken out, which raises the risk of an even deeper correction towards 1.5962 and possibly even 1.5922 before the next rally higher can be expected. That said, as we are in wave iii this correction could suddenly terminate short of the ideal target for the next swing higher. However, to confirm that the correction from 1.6218 is over we need a break above 1.6103 and more importantly 1.6160. A break above resistance at 1.6160 will call for a new rally higher towards 1.6218 on the way to 1.6387.
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