Wave summary:
The corrective decline from 118.40 continues to push lower, but we are now seeing a clear loss of downside momentum. At the same time, wave [ii] now has corrected 78.6% of wave [i] and the potential downside from here seems very limited. That said, a break above minor resistance at 113.51 will be needed to indicate that the correction in wave [ii] is finally complete, while a break above resistance at 115.31 will be needed to confirm that wave [iii] has taken over for the next impulsive rally above 118.40 for a continuation higher to 122.00 and beyond.
At no point can a break below 110.80 be allowed under this bullish count.
Trading recommendation:
We will buy a break above 113.51 and place stop 5 pips below the most recent low (likely 112.44).
