We have seen the expected rally higher in a complex correction in blue wave ii. The correction went a little higher than I expected, as we have seen a high at 131.56. However, we should soon begin to see renewed downside pressure for a break below support at 131.12 and more importantly a break below support at 130.79, which confirms, that blue wave ii is over and blue wave iii lower has taken over for a decline towards at least 1.2607 and maybe even lower. Longer term I'm looking for a decline towards very strong support at 124.96 and if this support breaks I will be looking for a continuation lower towards 118.73.
We should be in the very early parts of red wave iii higher. Red wave iii is most likely to become an extended wave and should at least reach 1.7326, but could well extend much further, which only time will tell. Short term I'm looking for support at 1.6693 to protect the downside for a break above resistance at 1.6738 and more importantly a break above resistance at 1.6790, which will confirm the next powerful rally higher towards 1.7045. However, if support at 1.6693 should be broken, the downside should be limited and only a break below 1.6600 will invalidate my bullish Count.
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