The current NZDUSD structure shows a bearish correction that was triggered at the cycle degree intervening wave x, near 0.6756.
The impulsive downside move, suggests that this is an impeding zigzag, consisting of primary sub-waves Ⓐ-Ⓑ-Ⓒ.
With the intermediate degree 5-wave impulse ending the first part of the standard zigzag correction at primary Ⓐ, we can now expect prices to retrace higher in an intermediate degree correction. This move could find resistance near 0.6470.
The target is the 61.80% Fibonacci retracement of wave Ⓐ, and the completion of wave Ⓑ.
A different eye provides us with an alternative scenario which suggests that the primary impulse wave Ⓐ has not been completed yet. And current price action indicates that we are moving higher into intermediate wave (4).
The bullish correction in wave (4) could be completed near 0.6413, where wave (4) will be at the 61.80% Fibonacci retracement of intermediate wave (3).
With this alternative in mind, we could expect a decline below 0.6008 in wave (5) – i.e. below the previous formed by wave (3).
