The current AUDUSD structure indicates the final leg of a large triple zigzag w-x-y-x-z of a cycle degree. In this triple zigzag, sub-waves w,x,y, and x, have already ended.
Most likely, we are now seeing the development of a bullish double zigzag z, which includes the sub-waves Ⓦ,Ⓧ, and Ⓨ. Ⓦ and Ⓧ have been fully completed, whilst wave Ⓨ is still under development.
If we consider Ⓨ it in more detail, we will see that it consists of sub-waves (A)-(B)-(C). In the near future, the market could rise in impulse (C) to the 0.804 area.
At that level, the entire wave z will be at 50% of bullish zigzag y. According to statistics, this coefficient is often reached by the last waves of triple zigzags.
If we consider an alternative scenario, we will see that it is possible that the cycle degree wave x is not yet complete.
If this hypothesis is correct, then we can assume that wave x will take the form of a bearish wave. This will consist of sub-waves Ⓦ-Ⓧ-Ⓨ and in its structure, it will be a double zigzag.
The first two parts of this double zigzag were fully complete, whereas wave Ⓨ is still under construction. Wave Ⓨ is a double zigzag, so it could consist of intermediate sub-waves (W)-(X)-(Y).
It is likely that in the next coming trading days, we can expect a decline in these sub-waves near 1.738. At that level, intervening wave x will be at 61.8% along the Fibonacci lines of previous wave y.
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