With the break below important support we had the final confirmation we needed, that wave b did finish at 132.74 and wave c lower now is developing. Wave c is an impulsive, that means wave c can be broken down in five smaller waves. Three in the direction of the trend, which is down, and two waves against the trend, which would mean towards the upside in this case. We are currently about to end the first impulsive wave down from 132.74. The first target for this wave i is at 129.59 followed by 129.27 and 128.96. We believe the most likely target is near 129.27, but only time will tell. Once this minor wave i of c is over we should expect a correction towards 130.99 in wave ii before the next impulsive decline lower.
I'm still looking for confirmation, that wave ii is over and wave iii higher is ready to take over. The first indication of wave ii being over will be a break above 1.6454 and more importantly a break above 1.6486, which will confirm a new impulsive rally above 1.6686 is developing. However, as long as resistance at 1.6454 has not been broken, we must accept the possibility of a deeper wave ii down towards support at 1.6349 and maybe even down to 1.6339, but that outcome is less likely.
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