EUR/USD - Odds favor that wave v down has begun

First lets take a look at the long term picture. As can be seen on the weekly chart above a big Shoulder-Head-Shoulder top. We have just seen a back-test of the S-H-S neckline just above 127. The long term target for this formation is near 88.35.

In Elliott wave terms we have seen wave A down from 160.38 to 123.28. Wave B up from 123.28 to 151.44 and we are currently in wave C down. At 114.34 wave C will equal wave A in lenght. If however wave C becomes extended it will fall to 91.41 if wave C become 1,618 time the lenght of wave A. That would be a common relationship.

If we look at the shorter time fram, we can see that the A-B-C correction from 118.75 found resistance in the upper part of my target-zone and the following decline looks impulsive.
We should soon see the decline pick up speed. When the current minor correction towards 126.18 is done we should see a powerfull decline down to the 121.50 area.