EUR/USD - Wave iv should be done

If my count is correct, we should soon see the beginning of wave V lower towards the 114.71 area. You might ask why I don't consider 118.75 to be the low of wave V (see the alternate count below). My main reason is that the RSI normally bottoms with wave (iii) of iii, if this the case here too, then the 118.75 bottom is only the bottom of wave iii and the rally from 118.75 to 126.62 a zig-zag wave iv calling for one more decline below 118.75 for a move closer to my target at 114.71.

The hourly chart clearly shows the zig-zag and a decline below 124,78 will be the first indication that wave V is under way. A break below 123.45 will add confidence while a break below 121.49 will remove all doubts.

Only a break above 127.50 will call for the alternated count shown below. A break above 127.50 will mean that the entire decline since 151.40 is over and is in the process of being corrected. If this is the case we should see a correction higher towards at least 131, but more likely a continuation higher towards 135 and even the 138.90 area.