The dynamic of the rally from 119.07 clearly tells me, that we are indeed in wave iii of 5. The first possible target for this wave iii, after the break above 127.70, is at 128.76, but I find it more likely to see a continuation higher towards 130.93, where wave iii will be 2.618 times longer than wave i. Short term I expect that support at 126.67 will protect the downside for the next rally higher towards 130.93.
A short term high have been established just below my first target at 1.5535. I'm now looking for at 1.5406 to protect the downside for the next rally higher towards resistance at 1.5630 and higher at 1.5770. However, if support at 1.5406 breaks the risk for a deeper correction towards the 1.5333 - 1.5350 area is to be expected before the next rally higher. For the longer term I expect this rally to exceed the top at 1.6359 for a continuation towards at least 1.6697, but this rally will likely be much higher.
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