There should be no doubt in anybodies mind, that the decline from the 127.70 high is corrective. The structure is overlapping , it is slow and it is confined within the boarders of the channel. That said we are still missing wave c down in the second zig-zag correction, therefore I'm looking for one last decline down to at least 121.26, where wave 4 will have corrected 23.6% of wave 3. However, a more normal corrective target would be at 117.28, where wave 4 will have corrected 38.2% of wave 3. For the short term I'm expecting minor support near 123.62 for a minor rally towards 124.57 and maybe even towards 124.82 before the next powerful decline to below 123.07 and more importantly below 122.55 confirming the decline towards 121,26.
My call for a decline to 1.5682 worked out perfectly, as we saw a decline to 1.5686 followed by the expected rally. I'm still look for a test of strong resistance near 1.5849 before wave c down is ready to take over. That said, a break below 1.5746 will be the first warning, that wave c down to 1.5467 and more likely 1.5176 is under way. A break below support at 1.5701 will confirm that wave c has taken over for the next powerful decline in this expanded ending diagonal.
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