The current bullish structure suggests that the first impulse wave ① ended with a false break above the 7.00 round resistance zone.
Following the primary degree 5-wave move, a bearish correction initiated in wave ②. The correction hints at a standard zigzag.
The ‘three’ pattern consists of intermediate sub-waves (A)-(B) and (C). With impulse (A) fully completed and (B) under development at the time of writing, we could see prices increase a tad higher.
Usually, (B) zigzag waves stop and reverse near the 61.8% of wave (A), which corresponds to 6.998 in our case.
After the successful completion of wave (B), we could see a decline in the intermediate wave (C), near 6.933. The target is the 150% Fibonacci extension of ① and ②.
Since corrections of impulsive moves do not necessarily test 1st waves, and because the strength of a trend is sometimes determined by the length of 3rd waves, an alternative scenario has equal possibilities of taking form.
That one assumes that the current corrective structure is part of intermediate wave (4), which suggests that primary wave ①is not completed yet.
The primary impulse consists of intermediate sub-waves (1)-(2)-(3)-(4) and (5). The structure at the time of writing indicates that intermediate wave (4) could have given rise to the last and final 5th wave, near 7.023.
The target would respect the tenancy of 5th waves expanding 127.2% as much as correction wave (4).
