AUDUSD: 5-Wave Impulse Likely To Complete Correction

In the medium term, AUDUSD seems to be forming a bearish combination Ⓦ- Ⓧ- Ⓨ .

Wave Ⓦ and intervening wave Ⓧ are fully completed, whereas wave Ⓨ is under development.

At the time of writing, a zigzag consisting of intermediate sub-waves (A), (B), and (C) seems to be forming, where wave (A) is a 5-wave impulse pattern, and wave (B) is a zigzag.

The 1H TF shows that the intermediate wave (A) consists of 5 sub-waves, and wave 5 of the impulse is an ending diagonal.

Wave (B) is an under-development zigzag with minor wave A completed and wave B nears its end.

In the short-term, we could see the continuation of the correction to end wave B, and then expect the pair to rise in a bullish 5-wave manner near 0.6876.