With the break above resistance at 130.56 we now must expect a much more complex correction developing. We should now be looking for a move higher towards the top at 133.81. This expected move higher will not be easy to break down, but we will take it step by step. I now expect support in the 130.00 - 130.10 range to protect the downside for the next rally higher towards 131.31 and a break above here will add confidence in a continuation higher towards strong resistance at 133.81. That said, it will take a break below 130.00 to question the rally higher, but only a break below 128.90 will invalidate this call.
We have been trading sideways since yesterday, but as long as resistance at 1.6756 protects the upside we could see one last decline closer to 1.6634 before the next powerful rally towards 1.7047 will be seen. However, my first target at 1.7047 should only be a minor bump on the way higher as I expect this rally to very powerful. To invalidate my call for much higher levels, it would take a break below 1.6583 as a break below here will call a decline to at least 1.6440.
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