Commentary: The ending diagonal scenario that we proposed appears to be unfolding. The rally from 1.4125 is wave iii of the diagonal and is likely to push a bit further so that it is longer than wave i of the diagonal. Waves i and iii would equal each other at 1.4458.
The 161.8% exstension is at 1.4664. Downside potential at this point looks limited as wave iv of the diagonal will be the next downside action and that will be followed by wave iv higher to complete the advance. In summary, the short term trend remains up as long as price is above 1.4125 but the rally from here could be choppy.
Strategy: Remain bullish, against 1.4188, Target TBD.