As we have seen a 23.6% retracement of wave i of 3 we could have seen the end of wave ii. However, it would take a break above 107.08 to ease the downside pressure and more importantly we need a break above 107.67 to confirm the bottom and at the same time indicate that wave iii of 3 is developing. That said, we shall remember that we are in wave 3 and correction during wave 3 tend to be small and even sub-normal. As long as we have not broken above 106.67 we must accept, that we could see a deeper correction of wave i down to the 38.2% retracement target at 105.04 before wave ii is finally over.
I'm still looking for wave ii to end soon as the room towards the downside is becoming very limited. Therefore I'm looking for a reversal above minor resistance at 1.5543 as the first minor clue, that a bottom is in place. However I would like to see a break above 1.5602 before I feel more confident that wave ii is indeed over and wave iii of 3 is developing towards 1.5927 and higher. The good thing is, that we know exactly where our invalidation point is. A break below 1.5390 will invalidate our count and call for a much deeper decline towards the bottom at 149.67 and maybe even lower.
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