By Orbex

The current XAGUSD formation hints at a large bullish 5-wave impulse consisting of sub-waves ①-②-③-④-⑤ of a cycle degree.

Currently, a bullish cycle impulse V is under construction. It consists of the primary sub-waves ①-②-③-④-⑤. The first three sub-waves ①-②-③ are fully completed and it seems that the primary correction ④ has also completed its construction. This took the form of an intermediate double (W)-(X)-(Y) zigzag.

Thus, we are currently at the beginning of the primary wave ⑤. Perhaps, along with its development, the price will rise to 31.40. At that level, cycle wave V will be at 50% of impulse III.

The alternative scenario suggests the development of a corrective trend, not an impulse one. Possibly, the chart shows the internal structure of the cycle wave y, which is the final part of the bearish double zigzag.

Wave y could be a primary triple zigzag, which can end near 24.31. At that level, primary wave Ⓩ will be equal to wave Ⓨ.

After wave y fully completes its pattern, the development of a new bullish trend above the maximum of 28.80 is likely.

By Orbex