As I expected it was only a question of time before resistance at 130.37 gave away and the underlying upside pressure forced the price higher. We are currently in wave 5 and the ideal target for wave 5 is near 135.47. Breaking down what we have seen of wave 5 so far, we are currently in wave (iii) of iii. I expect wave (iii) to end at 132.12 from where we should see wave (iv) down to 131.58 and maybe 131.15 before wave (v) takes over for a rally towards 133.59 before wave iii of 5 ends.
After a little detour to 1.5482 red wave ii finally found its bottom and we should now be in red wave iii higher. This red wave iii is expected to be very powerful and resistance at 1.5658 and at 1.5717 should not cause any trouble, once this wave really gets going. The target for this red wave iii is expected to be near 1.6142 and red wave iv should be a shallow correction to 1.5985 with a possibility of a deeper correction down to 1.5885 before the next powerful rally higher to 1.6299 in red wave v, which just ends wave (iii). Longer term I expect this rally to go much higher and we should at least see 1.7000 tested. However, I would not be surprised to see a continuation higher towards 1.9571 over the next many months.
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