The x-wave ended a little higher (131.31) than the ideal 130.88, where it would have corrected 61.8% of the decline from 133.81 down to 126.11. I'm now looking for the second zig-zag lower towards the ideal wave 2 target at 118.73, where wave 2 will have corrected 38.2% of wave 1 and at the same time, it is where we will find the bottom of wave iv, of one lessor degree. Short term I expect resistance at 130.68 will protect the upside for a decline towards 129.20 where we will find the next strong support, but it should just be a matter of time before this support breaks and the decline towards 126.11 and 118.73 continues. That said, a break above 131.31 and more importantly a break above 131.47 would call for a full test of the top at 133.81 and maybe even higher in a much more complex wave 2 correction.
Wave iii is still progressing nicely, but we are slowly but surely closing in on the top of black wave iii, which I expect will be found close to 1.7040. However, for now we are "only" in red wave v, which also will mark black wave iii, higher towards 1.7040. Once wave red wave v and black wave iii is in place we shall see a correction towards at least 1.6617 and more likely down to 1.6354, where wave iv will have corrected 38.2% of wave iii. As black wave ii was a complex wave, we should expect a simple zig-zag as black wave iv. However it could also become a complex triangle, but at this point it is less likely, but time will show us.
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