With the break above 121.36 we knew, that the triangle was a B-wave triangle and that we needed one more rally higher in wave c of X. As can be seen on the chart, a triple zig-zag combination is developing and it should be a matter of time before we break back below 118.78. The reason I'm are so sure this will be the outcome is the B-wave triangle. Triangles can never be second waves and therefore the rally from 118.78 must be a corrective X-wave. That leaves us with the big question, how high will this X-wave go. Looking at the short structure, there is a very high possibility, that it finished already at 121.83, but we need a break below 120.95 and more importantly below 120.40 to confirm that. A break below 120.40 will call for a new decline down to 118.78 on the way to the ideal target at 117.28, where wave 4 will have corrected 38.2% of wave 3. However, as long as we have not seen a break below 120.95 and more importantly below 120.40 we must accept the possibility, that this X-wave could move higher towards 122.74 before the next move down.
With a top at 1.5933 my call for a rally towards 1.5930 was almost perfect. We are now looking for minor resistance at 1.5879 to protect the upside for the next powerful decline. It should be remembered, that expanded flat corrections is a forewarning of the next move being very powerful and extended, this is exactly what we are expecting here. The only possible way for wave c of red wave d to reach close to 1.5200 it will be if it extends. As minor resistance at 1.5879 protects the upside we are looking for a break below 1.5788 and more importantly a break below 1.5708, which confirms the decline to 1.5592 on the way down to 1.5363 and 1.5234.
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