We saw a new attempt to break below strong short term support at 127.28 yesterday. This attempt failed, but it's as the downside pressure is getting stronger and stronger. A break below support at 127.28 should get things going towards the downside and indicate a new decline towards strong medium term support at 124.96 (purple line) and only a clear break below here will open up for my ideal wave 2 target at 118.73. However, as long as support at 127.28 is protecting the downside we could see a new test of the falling channel resistance just below 129.00, but it should continue protecting the upside for the break below strong short term support at 127.28.
Here we saw a new attempt to break above short term resistance at 1.7006 yesterday, but it failed and that turned us down towards strong support at 1.6825. The support at 1.6825 marks the top of red wave i of black wave v and should not be broken, as that would leave us with an overlap between red wave i and red wave iv, which is not allowed under the Elliott Wave Principle. Therefore I continue to expect, that support at 1.6825 will continue to protect the downside for a break above resistance at 1.6960 and more importantly a break above 1.7006, which should open up the upside for the final rally higher. As both red wave i and red wave iii has been almost equal in length, it's entirely possible, that red wave v will be the extended wave. An extension in red wave v will equal the distance traveled from the bottom of red wave i at 1.6388 to the top of red wave iii at 1.7111 and will give us a possible red wave v target near 1.7550. That said we will have to stay alert for the signs of a possible top as all requirements for an impulsive rally since the 1.5080 low has been fulfilled.
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