The very bumpy b-wave continues to work its way higher towards my ideal target, which is at the former high at 133.81. That said we have seen the first signs of this move getting weaker and it's loosing momentum all the time now. Therefore we are getting closer to the b-wave top and should be prepared for the powerful decline in wave c taking over. The first target for wave c will be at 124.96, but it could extend and break below 124.96 for a decline closer to the bottom of wave 4 of one lessor degree, which comes in at 118.73. Short term I'm looking for slightly higher levels as long as support at 131.37 and more importantly support at 130.76 protects the downside, but a break below 131.37 is a new clear sign of weakness, while a break below 130.76 will indicate, that wave c is developing.
It has been a disappointment to see yet another failure to break clearly above 1.6672. That said, I'm still looking for a powerful rally to take over soon in wave iii of 3. Short term we will ideally see support at 1.6526 protect the downside for a break above resistance at 1.6634 and more importantly a break above resistance at 1.6686, that confirms wave iii is developing. However, if support at 1.6526 breaks then we have support just below at 1.6495 and important support at 1.6476, which should not be broken at any time as that would force me to change my short term count.
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