The wave iv of 5 correction I where expecting, has worked out nicely. We have already seen a small break below 127.70 with a low at 127.55 so the absolute minimum correction is fulfilled, but will we see more downside pressure? I don't expect much more downside pressure from here. Instead I expect a rally to set in soon for a move towards the 130.07 - 130.34 area in wave b of a possible triangle. Let it be said instantly, that I have no evidence, that a triangle might be building, but I do think it is a qualified guess, as I expect a complex correction in wave iv of 5 and a triangle will fit nicely into that expectation. It is also important to mention, that we should not see a break below the wave i of 5 high at 126.04 as that would leave us with an overlap between wave i and iv, which is not allowed under the Elliott Wave Principle when an impulsive rally is unfolding.
The rally from the 1.5080 low does have all the characteristics of an impulsive rally, but we still need a break above 1.5521 to confirm, that an important low is in place at 1.5080. If/when we break above resistance at 1.5521 I'm expecting that a new major rally is unfolding for a rally higher towards at least 1.6366 and likely even higher in the longer term. Short term I'm looking for a minor support at 1.5307 to protect the downside for the next rally higher towards 1.5490 from where we should some sideways consolidation before that last rally above important resistance at 1.5521. Once a new high, slightly above 1.5521 is set we should expect a correction towards the 1.5250 - 1.5305 area, from where an even more powerful rally is expected.
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