I'm still looking for the last rally higher towards the ideal target near 134.47, where I expect the entire rally, since the 94.10 low, to end and mark the top of wave I. Once we have wave I in place I will be looking for wave II lower to the bottom of wave 4 of one lessor degree, which comes in at 118.73. Short term I would like to see support at 131.55 protect the downside for a break above 132.13 to confirm the next rally higher towards 132.77 and higher to 133.54 on the way to the ideal target near 134.47. That said only a break below support at 130.97 will indicate, that wave v of 5 ended early and the major wave II correction is already ongoing.
We have seen the expected correction down to 1.5770 (it has been a little deeper with a test of 1.5749), but we should be ready for the next rally higher and are looking for a break above minor resistance at 1.5840 to confirm the next strong rally higher. On this next rally higher I'm also looking for a clear break above the base-channel resistance line confirming that we are in red wave iii, which ideally should make it to at least 1.6481 and possibly even higher. That said, as long as minor resistance at 1.5798 and more importantly resistance at 1.5840 protects the upside, we must allow for a decline lower towards 1.5735, but I do favor the rally higher from here.
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