NZDUSD Ending Diagonal To Complete Cycle Zigzag

By Orbex

In the long term, the formation of the NZDUSD currency pair hints at a cycle zigzag pattern that consists of three main sub-waves a-b-c.

On the current chart, we see the second half of a major correction wave b of the cycle degree. It seems to have completely ended, taking the form of a primary triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.

After the completion of the correction pattern, we saw the development of the initial part of the cycle wave c. This is likely to take the form of an ending diagonal. And it consists of primary sub-waves ①-②-③-④-⑤.

The entire diagonal can complete near 0.722. An approximate scheme of possible future movement is shown on the chart.

Alternatively, the formation of the correction wave b has not ended. Perhaps the primary wave Ⓩ will not be a double, but a triple zigzag (W)-(X)-(Y)-(X)-(Z) of the intermediate degree.

We see that the first four parts of the intermediate pattern are fully complete. Now we turn our attention to the intermediate wave (Z).

The wave (Z) can take the form of a minor double zigzag W-X-Y.

The fall of the exchange rate in the alternative is likely at the 0.640 area.

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Article by Orbex

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