NZDUSD Ending Diagonal to Complete at 0.722
The current formation of the NZDUSD pair hints at a cycle zigzag pattern that consists of sub-waves a-b-c.
On the current chart, we see the second half of a major correction wave b of the cycle degree. It looks fully complete, taking the form of a primary triple Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ zigzag.
After the cyclical correction ended, we saw the development of a cycle wave c. This most likely takes the form of an ending diagonal and consists of primary sub-waves ①-②-③-④-⑤.
The first four primary sub-waves ①-②-③-④ have been built. And now the formation of the final correction sub-wave ⑤ has begun. The entire diagonal can complete near 0.722.
Let’s look at an alternative option, where the formation of the correction wave b has not ended yet. Perhaps the primary wave Ⓩ will not be a double, but a triple zigzag (W)-(X)-(Y)-(X)-(Z) of the intermediate degree.
We see that the first four parts of the intermediate pattern are fully complete, and now the market is in the intermediate wave (Z).
The wave (Z) is similar to the minor double zigzag W-X-Y, as shown on the chart.
A decline in prices in the alternative is likely at the 0.640 area.