There was no time for even a small correction down to 126.67 before the next part of the rally took off. I'm looking for wave iii of 5 to terminate close to 130.90, where wave iii will be 1.618 times longer than wave i (I apologize for writing 2.618 yesterday, but I'm sure it was just fat fingers early in morning...) . Once wave iii is finished wave iv will take over. As wave ii wave a very deep and relatively simple correction we should expect wave iv to be a shallow and complex correction, but for now we should still focus on the upside as wave iii of 5 unfolds, with an ideal target near 130.90.
With the break below support at 1.5406 we knew we should be looking for a deeper correction as wave ii unfolded. I expect to see a correction to at least the 1.5333 - 1.5350 area. As it is wave ii it could become deeper, but I have noticed that correction in impulsive waves, in this cross, tend to be sub-normal. Once this correction is over near 1.5333 or upon a break above 1.5462 we should see a powerful rally towards at least 1.5883 and possibly even higher. Short term we expect minor resistance at 1.5419 will protect the upside for a break below 1.5859 confirming one last decline into the target-area between 1.5333 - 1.5350.
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