The failure to break above resistance at 120.85 has preserved the downside pressure, but I still think that a bottom is very close at hand and is looking for a break above resistance at 120.85 soon to confirm the next rally higher. A break above 120.85 will open up for a rally towards 121.88 and higher towards at least 124.50. Depending on whether we have begun wave 5 higher resistance at 124.50 should be broken without much trouble or if it protects the upside our alternate triangle count comes into action for one last decline down to 121.59 before the final thrust out of the triangle towards the upside. That said, as long as resistance at 120.88 protects the upside we could see slightly more downside pressure, but at no point can a break below 118.73 be accepted, as a break below 118.73 will invalidated my bullish count and call for a decline closer to 117.05 before the next rally takes place.
I'm still looking for a break above 1.5342 to confirm, that we have seen a bottom at 1.5227 and the next powerful rally higher towards 1.5409 and1.5627 longer term. Ideally support at 1.5279 will protect the downside for the break above 1.5342, but only a break below 1.5227 will invalidate my bullish count for a push slightly lower, but the possible downside is very limited and we should stay focused towards the upside.
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