The break above the falling resistance line from ultimo 2008 is important. It's confirms that wave (iii) of 3 is well under way. Do expect support 107.14 to hold, but we must accept a deeper short term correction towards 106.31 before the next rally through will be seen. Wave (iii) should reach at least the 112.06 area, but will more likely continue towards the 116.87 area.Notice the overlap of black circle wave 1, that, I think, is important as it tells us something about EUR/USD too. It is possible to count a five wave decline in EUR/USD (see the chart below), but looking at black circle wave 1 and black circle wave 3 they are almost equal in length (wave 3 is a little longer than wave 1), which means that wave 5 should be small or become the extended wave. EUR/USD and USD/CHF tend to trend together, therefore I would expect black circle wave 5 in EUR/USD to extend as wave (iii) of 3 of black circle wave 3 in USD/CHF kicks in.
I have also shown the very bullish alternate count on the bottom of the EUR/USD chart below, it is a possibility, but for now my prefered count is the one where black circle wave 5 becomes the extended wave.
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