It finally seems as we are going to see the last part of the rally towards the ideal target near 134.47. Over the last week a small wave iv of v of 5 triangle has been developing and we have seen the start of the thrust towards the upside. Short term we are looking for support near 132.32 to protect the downside for a break above resistance at 132.77, which will open the upside for a continuation higher towards 133.54 and 134.47 as the ideal target. As I expect this to be the final rally higher, we should Work with stops in as close as possible and look for sings, that the entire rally since the 94.10 low is coming to and end.
As we saw a break below support at 1.5744, we saw a little detour to 1.5702 before we saw the next move higher. With the break above resistance at 1.5840 we should now see the upside pressure increase. We are looking for support at 1.5820 to protect the downside for a break above 1.5854, which will confirm the next test of resistance at 1.5924, but this time we should see a clear break above this resistance for a continuation higher towards 1.6481. However, if support at 1.5820 is broken it will delay the rally higher for a slightly deeper correction towards 1.5764 before the next rally higher.
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