The current NZDUSD structure indicates that a large bullish triple zigzag is forming in the market. This is the cycle wave y of the global uptrend.
This zigzag consists of primary sub-waves Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ which, in turn, include intermediate sub-waves. The first four sub-waves Ⓦ-Ⓧ-Ⓨ-Ⓧ have been fully completed. At the moment, most likely, the development of a bullish wave Ⓩ is taking place.
Wave Ⓩ can take the form of a double zigzag (W)-(X)-(Y), as indicated on the chart.
Thus, in the near future, the market could grow in a zigzag pattern to the 0.741 area. The goal is determined using the Fibonacci extension. At that level, wave Ⓩ will be at 123.6% of wave Ⓨ.
An alternative scenario suggests that the development of a global bearish correction wave x of the cycle degree could be incomplete. Now we see the completion of the primary sub-wave Ⓩ, which is in the last part of the wave x.
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Wave Ⓩ, according to internal structure is a triple zigzag (W)-(X)-(Y)-(X)-(Z) of the intermediate degree.
Most likely, we are now seeing the development of the final actionary wave (Z). This wave can end near 0.682 and then move higher to 0.721.
Article by Orbex
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