The current structure of the AUDUSD pair eyes the construction of a triple zigzag consisting of cycle degree waves w-x-y-x-z.
On the chart, we can see the end of the actionary wave y, after which the market formed a bearish intervening wave x.
In the near future, we could see a rise within the new impulse wave. This will consist of five sub-waves 1-2-3-4-5 of a minor degree. Soon, prices could correct in wave 2, then wave 3 will send the market above the maximum of 0.760.
An alternative scenario sees the cycle intervening wave x as not yet finished. Its final sub-wave Ⓨ is similar to a triple combination of the intermediate degree. This consists of sub-waves (W)-(X)-(Y)-(X)-(Z), where the first four parts are completed, and the last part is at the beginning of its development.
We could see a decline in the price and the formation of a minor A-B-C zigzag to 0.714. At that level, intermediate wave (Z) will be at the 50 % Fibonacci extension of wave (Y).
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