We were looking for a rally closer to 132.82 to complete wave B, but the decline from 131.74 has been deeper than expected and has overlapped wave i, which isn't allowed under the EWP. Therefore we must consider the possibility of a fifth wave failure at 131.74 as the completion of wave B and wave C lower to 127.52 and the long-term downside target at 123.43 is unfolding already.
Only a break above minor resistance at 131.30 will ease the immediate downside pressure for a spike higher to 132.82 to complete wave B and to set the stage for the final decline in wave C.
R3: 131.74
R2: 131.30
R1: 130.75
Pivot: 129.96
S1: 129.45
S2: 129.22
S3: 128.93
Trading recommendation:
We are long half the normal position at 130.70 with stop + revers placed at 129.90. Take profit + revers is placed at 132.65.
