Wave 2 could well be over soon. My ideal target area has been penetraded, we have seen a small break above the channel resistance-line and we do have a negative divergence on most indicators (RSI, MACD ect. not shown). All adding up to a possible top, whats needed now is a break below 129.75 to confirm the top for wave 2 is in place and wave 3 down is in motion.As long as 129.75 isn't broken to the downside, we could see an extension of wave 2 higher towards 131.73, where wave 2 would have retraced 78.6% of wave 1. That is a very common retracement target for wave 2 in the currencymarket.
If the top is in place, then wave 3 should decline 118.55, where wave 3 will be 1.618 time longer than wave 1.
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