NZDUSD Is The Cycle Correction Wave B Completed?

By Orbex

The current formation of the NZDUSD currency pair hints at a cycle zigzag pattern, which 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 looks fully completed, taking the form of a primary triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.

After the completion of the correction pattern, the market turned around, and we saw the development of the initial part of the cycle wave c. This wave is likely to take the form of a simple 5-wave impulse, as shown in the chart, consisting of five primary sub-waves ①-②-③-④-⑤.

Sub-waves ①-② have ended, and now the formation of the impulse ③ has begun. This is likely to end at the previous maximum of 0.722.

Alternatively, the formation of a correction wave b of the cycle degree can be continued. 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 have ended. Now the price could soon begin to decline in the final intermediate wave (Z).

The wave (Z) can take the form of a minor double zigzag W-X-Y, as shown in the chart near 0.640.

At that level, primary wave Ⓩ will be at 161.8% of primary wave Ⓨ.

Article by Orbex

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