AUDUSD: Wave 4 Correction Could Lead Fresh Declines

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The current long-term structure on AUDUSD hints to a triple combo wave in the cycle degree, labeled w, x, y, x, z.

The last part of the bearish zigzag (wave z) consisting of primary sub-waves Ⓐ -Ⓑ -Ⓒ is currently under formation.

Waves Ⓐ and Ⓑ are already completed.

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Looking at the lower timeframe we can spot the first few signs of the potentially last bullish move to completing intermediate wave (4). It could be an impulse or a zigzag (a)-(b)-(c).

In the near future, we could see the Aussie market appreciate near the 0.6856 area. The said activity level is the 100% Fibonacci extension of wave (a) and (b) and it would respect the tenancy of impulses (a) and (c) being equal.

Following the completion of the corrective wave (4), we could expect a slide in a bearish-like 5-wave style that is likely to end near 0.667.

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