By Orbex
The current structure of NZDUSD indicates that a large bullish zigzag is forming. This is the primary wave Ⓦ of the global uptrend.
This zigzag consists of intermediate sub-waves (A)-(B)-(C). These, in turn, include minor sub-waves. Impulse (A) and the correction to impulse (B) have been fully completed. And at the moment bullish wave (C) is developing.
Minor sub-waves 1-2-3-4-5 are part of wave (C). Correction wave 4 recently ended, after which we saw the growth in bullish impulse 5. Now wave 5 is under construction.
Thus, in the near future, the market may grow in impulse 5 near the 0.729 area, using the Fibonacci extension. At the level of 0.729, the entire impulse wave (C) will be at 123.6% of impulse wave (A). Then, upon reaching that level, a reversal and the beginning of a downward correction are possible.
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An alternative scenario suggests that the development of a global downward correction wave x of a cycle degree could be incomplete. Now we see the completion of the primary sub-wave Ⓧ. This is located in the penultimate part of wave x.
Wave Ⓧ is a zigzag and consists of sub-waves (A)-(B)-(C).
The development of impulse wave 5 as part of wave © is likely. In this wave, using the resistance line drawn through the vertices (A) and 3, there might be a slight price increase, possibly near 0.723.
Then, after reaching that level, we can anticipate a decline in a new descending wave Ⓩ below the 0.705 level, drawn through the end of the fourth wave of the minute degree.
In the near future, wave Ⓧ could complete and a new downtrend may begin.
Article by Orbex
Orbex is a fully licensed broker that was established in 2011. Founded with a mission to serve its traders responsibly and provides traders with access to the world’s largest and most liquid financial markets. www.orbex.com
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