In yesterday's post, we said that a break above minor resistance at 0.9709 would be the first indication that the corrective decline from 1.6038 had been completed. We have now seen that break above. If the break was as significant as we expected, then a new impulsive rally would develop and it should ultimately break above the peak of wave I or A at 1.6038. This is a very long-term picture and of course, this will not be in a straight line.
So we will have to break it up in baby steps. The first small part was the break above 0.9709 and if this count is valid, the low at 0.9535 will not be broken at any time. The next minor step is a break above resistance at 0.9907 and more importantly a break above resistance at 1.0051 that really will be a sound foundation under our long-term count.
