Commentary: We wrote last week to “expect a spike through 115.14 and possibly a test of the 61.8% of 115.91-114.46 at 115.36 before the next leg lower begins.” The spike ended at 115.41 in what we are treating as wave ii within a new 5 wave bear cycle from 115.91.
Wave iii lower is underway and the bearish bias is strong as long as price is below 114.81. Look for the decline to accelerate.
Strategy: Remain bearish, move risk to 115.41 (from 117.10), target below 111.59