We are clearly seeing a loss of downside momentum and a small ending diagonal building, which indicates that we are close to a bottom, but we need confirmation, that a bottom is indeed in place. A bottom will be confirmed if we do see a break above 120.86 and more importantly a break above 121.87, which will confirm a new rally higher towards at least 124.50 and possibly even higher trough 127.70 if wave iii of 5 is developing. However, as long as support at 120.86 is protecting the upside we can not rule out more downside pressure, but it should very limited and only a break below 118.73 will invalidate my bullish call and indicate a decline to 117.05 before the next rally higher.
I was quite surprised to see a break below 1.5227 yesterday, which invalidated my bullish call and confirmed, that the E wave of the large expanding triangle still is evolving. That said, the downside potential is limited and a bottom can be in place any time soon. However, we need prof in the form of a break above resistance at 1.5319 and more importantly a break above 1.5376 to confirm the bottom and that a new major rally higher have begun. Until the break above the resistance is seen the downside pressure will prevail, but as we said it should be limited from here.
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