By Orbex
NZDUSD has completed the formation of the correction wave x of a cycle degree. It is a double zigzag consisting of primary sub-waves, the last part of which is an intermediate double zigzag (W)-(X)-(Y).
A cycle wave y is currently under development, which can take the form of a primary standard zigzag Ⓐ-Ⓑ-Ⓒ. In the last section of the chart, we can notice the primary impulse wave Ⓐ and the bearish correction Ⓑ in the form of an intermediate triple zigzag.
In the near future, the development of the primary wave Ⓒ is likely in the direction of a maximum of 0.746. It can take the form of a simple 5-wave impulse.
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An alternative scenario indicates that the global intervening wave x of a cycle degree could not be complete yet.
In this case, the last part of this wave, which is the primary wave Ⓩ, is still under development. It consists of intermediate sub-waves (W)-(X)-(Y), where wave (X) was formed not so long ago.
In the near future, the decline in the alternative scenario could continue in the minor wave Y. This could complete the intermediate double zigzag near 0.665. At that price level, wave Ⓩ will be at 100% of wave Ⓨ.
Only after the completion of the intervening wave x, the market can begin to move up in the cycle wave y above the level of 0.717 marked by the primary wave Ⓧ.
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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