Yesterday we moved a little higher, than the expected resistance at 130.69 (the high came in at 130.80), before the floor was dragged away under this cross. The decline from 131.12 down to 128.65 has all the earmarks of an impulsive decline (it's clearly in five waves), therefore we should only be looking for upside corrections and impulsive declines for now. as the correction from 128.65 seems to be over, I will now be looking for a very dynamic and powerful decline towards at least 126.30 (where wave iii will be 1.618 times longer than wave i) in wave iii of C. Short term a break below 129.41 will confirm, that wave iii is developing for the decline towards at least 126.30 and maybe even lower. Short term I would like to see resistance at 130.05 and more importantly resistance at 130.28 protect the upside for the break below 129.41.
This correction is becoming almost impossible to decipher. The likely Elliott wave formation to describe the price-action over the last week is, that a new triangle has developed as a new minor x-wave. This possible triangle is likely finished and with the break below 1.6675 the odds now favors the downside, for a continuation towards the support-zone between 1.6578 - 1.6600 and a break below here will confirm a decline towards my ideal target for the X-wave at 163.88 I have been looking for since the 171.12 high. Resistance is now found at 1.6778 and more importantly at 1.6823, which should protect the upside. A break above 1.6823 will shift the x-wave triangle into a b-wave triangle and call for a rally towards 1.6909, before lower again.
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