With the rally to 129.34, the correction from 127.10 became slightly higher than I expected, but It did not change the larger picture in any way. We are currently testing strong support at the neckline at 126.50, but it should just be a matter of time, before this support breaks and we sees a continuation lower towards 125.77 and 125.20. My ideal target for the ongoing wave 2 is at 118.73, where wave 2 will have corrected 38.2% of wave 1 and it is also, where we find the bottom of wave iv of one lessor degree. Short term we will find resistance at 127.09, which ideally will protect the upside, but it will take a break above 128.17 to invalidate my bearish call.
My expectation of a top at 171.09 was clearly confirmed yesterday, as we broke below support at 1.6692 without any problems. I'm currently looking for black wave iv declining to 1.6399 before the final black wave v can take over. Short term I'm looking for resistance at 1.6934 to protect the upside for a break below 1.6798, which will confirm that the next decline lower is unfolding. However, if we break above 169.34 we might already have seen the bottom of black wave iv at 1.6537 and should expect a new rally towards 171.09.
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