Minor resistance at 120.25 protected the upside for the next downside pressure. Even though I think, that further downside action will be limited, we need some firm prof, that wave ii of 5 is over. The first indication, that wave ii of 5 is over will be a break above 120.25 and more importantly a break above 120.86. A break above the later should accelerate the rally higher towards at least 124.50 and possibly even higher through 127.70. However, as long as minor resistance at 120.25 protects the upside we must accept the continued small progress towards the downside, but we can not accept a break below 118.73 as that would invalidate my bullish count and call for a continuation down to 117.05 in wave 4 before higher.
I'm still looking for more evidence, that a new major rally has begun. Yes we did see a break above 1.5342, but the follow through was very limited and not prof enough that the new rally has indeed begun. Short term I'm looking for support at 1.5303, which will ideally protect the downside for a break above 1.5350 and more importantly a break above 1.5363 for the next strong rally higher. However we must accept the possibility for an expanded flat correction building in red wave ii and that would call for a continuation down to 1.5263 before the next rally higher.
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