See yesterday’s commentary for the longer term outlook (which is bullish). Near term, we are concentrating on the rally from .9710 and looking for long entries. We view the .9710-1.0324 bull leg as a wave 1 impulse within a 5 wave bull cycle (wave i of 1 is a diagonal). Therefore, wave 2 is underway now.
Specifically, the drop from 1.0324 is wave a of 2. The wave 2 correction will probably continue for a few more weeks before ending closer to .9950 (61.8%) / 1.00 (former resistance). This is where we will look to get long.