NZDUSD Stalls Ahead of Last Leg

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The current NZDUSD formation hints to a bullish zigzag consisting of waves Ⓐ-Ⓑ-Ⓒ.

The primary-degree structure suggests that waves Ⓐ and Ⓑ are complete. On the other hand, the impulse wave Ⓒ is still under development. It has completed only 3 parts of the 5-wave move.

In the short term, we could see the intermediate wave (4) complete its correction near 0.6330. At that level, wave (4) will be at 50% of wave (3).

Then, the last leg in wave (5) could take the pair above 0.6580. This is above the previous high formed by wave (3).

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An alternative view suggests that the intermediate wave (4) could take the form of a triangle. In this scenario, the minor-degree pattern consists of sub-waves A-B-C-D-E.

In the short term, we could wave C completes its correction on the support line, i.e. near 0.6390.

Then, we can expect prices to rise in wave D near 0.650. At that level the correction wave will be at 76.4% of wave C.

After the completion of wave E, NZDUSD can be expected to rise in the final wave (5).

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