We are still locked between the two converging lines. One of this two lines have to give away soon, as we are getting close to the apex. I still thing the most likely scenario is a break below the support line near 129.39 for a powerful move lower towards 128.00 on the way down to 124.96 and possibly lower. However, as long as support at 129.39 protects the downside we could see a move closer to 130.00, but under no circumstances should we see a break above 130.43 and more importantly a break above 130.56, as that would open up the upside towards the high at 133.81 in a very complex correction.
We saw support at 1.6583 on Friday, just above my expected support at 1.6577. As we are entering red wave iii of black wave iii we should soon see a very powerful rally higher towards at least 1.7047 and possibly higher. Short term I expect that support at 1.6710 will protect the downside for a break above 1.6806 confirming the next powerful rally higher towards 1.7047. However. if support at 1.6710 breaks, then the potential downside price action should be limited to 1.6646 before the next move higher.
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