We are currently in a wave 2 correction, correction the entire rally from the 94.10 low to the 133.81 high. I expect this correction to correct 38.2% of wave 1, which will give us an ideal target near 118.73. We are currently in the middle of this correction and I'm looking for important resistance at 127.01 to protect the upside for a break below 126.13, which will confirm a new test of strong the neck-line support at 124.96 and a break here will accelerate the decline towards my ideal target 118.73. However, if important short term resistance at 127.01 gives away, we need a move higher to 128.28 before we can expect the next part of this decline.
With the break above important short term resistance at 1.6590 we had the confirmation we needed to say, that we did see the bottom of wave iv at 1.6388 and wave v higher towards the ideal target near 1.7640 is now developing. Short term we now find support at 1.6651 and strong support at 1.6595, which ideally will hold for the next rally higher towards my next targets 1.6913 and 1.6983, but they should just be small bumps on the way higher towards our ideal target near 1.7640.
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