After the break above important short term resistance at 126.91 I was expecting a rally higher towards 128.28. We have seen a rally beyond that point, but it is no critical in any way. A break above resistance at 129.34, would not be expected, but only a break out of the falling channel will indicate, that the wave 2 correction from 133.81 ended early and the next impulsive rally higher in wave 3 has already begun. However, if resistance at 129.34 protects the upside for a break below 127.81 and more importantly a break below 127.05 we know, that we have a top in place for a new decline towards strong support at 124.96.
We saw red wave ii of black wave v end at 1.6615 yesterday and as it would be expected of red wave iii, it was very explosive. However, I expect that it was only the first part of red wave iii and that we should soon see this rally higher continue towards 1.7109 and higher towards 1.7320. Short term I'm looking for support at 1.6810, which will ideally protect the downside for the next impulsive move higher towards resistance at 1.7109.
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