The rising channel is still intact, which means we still have two possible options at this point. The first is, that a more complex wave iv correction is ongoing from 120.12 and will be resolved in on final rally higher towards the ideal target at 121.28. Secondly we could already have seen wave 3 end at 120.71 (just below the ideal target at 121.28) and wave 4 is ongoing. This wave 4 will likely take us down to 113.54, which marks the bottom of wave four of one lessor degree. At this stage it is impossible to say which option is the correct one. However. We have to remember that we are in the final parts of wave 3 and even if we see one more rally higher towards 121.28. we are pretty close to a top. Short term we expect support at 118.35 will protect the downside for a test of the 119.40 - 119.50 area, before some real downside pressure takes over again.
We are still looking for one last decline towards our target at 1.5703 as long as minor resistance at 1.5836 and more importantly minor resistance at 1.5855 protects the upside. From support at 1.5703 or upon a break above resistance at 1.5836 we will be looking for the next strong and impulsive rally towards the top at 1.6218 and higher towards 1.6500. Expanded flat corrections normally indicates, that the following impulsive wave will be an extended wave, which in this case means a rally higher to at least 1.6500, where blue wave iii will be 1.618 times longer than blue wave i. However, for now we are still looking for one last decline down to 1.5703 as long as minor resistance at 1.5836 stays unbroken.
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