This article was first published on Orbex Forex Trading Blog.
This content is synced from the rightful owners. Copyright on text and images belong to the original source.
AUDUSD seems to be forming a triple zigzag in cycle wave b. The bullish pattern consists of primary sub-waves Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.
The current structure suggests that we are in the final wave. Wave Ⓩ is a standard zigzag (A)-(B)-(C) of the intermediate degree.
In the short term, we can expect AUDUSD to rise in minor wave 5, near 0.753. In this area, wave b will be at 76.4% of wave a.
An alternative scenario suggests that primary wave Ⓧ has not completed in full.
The formation hints at an intermediate degree (A)-(B)-(C)-(D)-(E) open triangle.
Therefore, we can expect the completion of waves (D) and then (E) near 0.698. That is the lower triangle support.
At that point, we can expect the pair to rise in wave Ⓩ of b.
To keep reading this article, please navigate to: Orbex Forex Trading Blog.