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NZDUSD seems to be developing a bearishⒶ-Ⓑ-Ⓒ zigzag of the primary degree. Wave A formed a 5-wave impulse pattern, whereas wave Ⓑ seems incomplete.
Its current structure suggests a standard zigzag consisting of intermediate sub-waves (A)-(B)-(C).
In the medium term, we expect prices to rise in the ending wave (C) near 0.698.
At the target level, intermediate wave (C) will be at 161.8% Fibonacci extension of wave (A).
An alternative scenario suggests that primary Ⓑ correction could turn into a triple zigzag pattern.
In this case, the complex pattern consists of intermediate sub-waves (W)-(X)-(Y)-(X)-(Z).
Thus, in the short term, we expect prices to rise in wave (Y) near the 0.666 area. The target is on the resistance line.
Then we could see prices decline in the intervening wave (X) near 0.620. This level is on the support line.
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