AUDUSD Final Leg Of Triple Zigzag

The structure of the AUDUSD pair suggests the construction of a triple zigzag consisting of cycle sub-waves w-x-y-x-z.

On the chart, we can see the end of the actionary wave y. After this, the market formed a bearish intervening wave x. It is likely that this wave has ended, as it represents a double zigzag of the primary degree.

We are currently in the initial part of the final actionary wave z. It will most likely take the form of a double combination, as shown on the chart.

In the short term, we expect the construction of a double zigzag Ⓦ-Ⓧ-Ⓨ near 0.787. At that level, wave z will be at 76.4% of wave y.

AUDUSD

It is worth considering an alternative scenario, in which the formation of the cycle intervening wave x is not complete yet.

We can assume that it takes the form of a triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ. Perhaps soon we will see the end of the primary intervening wave Ⓧ near the level of 0.759, where it will be at 61.8% of wave Ⓨ.

Then the primary wave Ⓩ may send the price down significantly below the maximum of 0.710.

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About the Author
“John Benjamin Resident Analyst at Orbex. John has over 8 years of experience specializing in the currency markets, tracking the macroeconomic and geopolitical developments shaping the financial markets. John applies a mix of fundamental and technical analysis and has a special interest in inter-market analysis and global politics.” [space height="10"] At Orbex, we are dedicated to serving our clients responsibly with the latest innovations in forex tools and resources to assist you in trading. Please Director at Visit our site for more details.

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