By Orbex
For the AUDUSD currency pair, we can assume that a bearish intervening wave x of a cycle degree is forming. It hints at a triple Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ zigzag.
The bullish intervening wave Ⓧ is currently under construction, which takes the form of an intermediate double (W)-(X)-(Y) zigzag. Wave (W) is a double zigzag with wave (X) being a triple zigzag. Wave (Y) is only half-built, and it will most likely also have the form of a double combination.
In the near future, there is an expectation for a slight decline in the minor intervening wave X. This may be followed by the final actionary wave Y to the level of 0.770.
At that level, wave Ⓧ will be at 76.4% of wave Ⓨ. After the full completion of the wave Ⓧ, market participants can expect a fall in the direction of the 0.710 level, or even lower.
Free Reports:
Download Our Metatrader 4 Indicators – Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
An alternative scenario suggests that the formation of the primary intervening wave Ⓧ has already completely come to an end. In fact, it took the form of an intermediate double zigzag.
A drop in price and the development of the primary wave Ⓩ are likely due to a reversal.
Bears could now be eyeing the 0.707 level.
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
- FastSpring and EBANX Forge Partnership to Expand Pix Payments for Digital Products in Brazil Apr 25, 2024
- Target Thursdays: NAS100, Robusta Coffee, USDCHF Apr 25, 2024
- QCOM wants to create competition in the AI chip market. Hong Kong index hits five-month high Apr 25, 2024
- Japanese yen hits all-time low as BoJ meeting commences Apr 25, 2024
- TSLA shares rose on a weak report. Inflationary pressures are easing in Australia Apr 24, 2024
- USDJPY: On intervention watch Apr 24, 2024
- Euro gains against the dollar amid mixed economic signals Apr 24, 2024
- PMI data is the focus of investors’ attention today. Turkey, Iraq, Qatar, and UAE signed a transportation agreement Apr 23, 2024
- Australian dollar rises on strong economic indicators Apr 23, 2024
- Geopolitical risks in the Middle East are declining. China kept interest rates at lows Apr 22, 2024