It finally seems as blue wave ii have come to an end. Short term I'm looking for resistance at 131.55 to protect the upside for a break below 131.07, which will confirm a continuation lower towards strong support at 130.40. However if my count is correct support at 130.40 would likely seem like butter and prices would cut through it like a warm knife. Long term I'm looking for re-test of strong support at 124.96 in a flat correction. We might fall even more, but for now let's concentrate on getting down to 124.96. The risk is a break above 131.55 which would make the decline from 131.98 look like a correction a call for a new test of this resistance.
We have seen the expected rally higher and have both broken the former high at 171.13 and broken above the base channel resistance-line, we should see wave iii accelerate towards the upside for a test of my first target at 1.7326. However we could easily see this rally extend further and if this is the case, we should be looking for 1.7886 as the next major target. Support is now found at 1.7028 and again at 1.6987, but we should expect corrections to be sub-normal in wave iii.
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