Forex Trading Library

AUDUSD Cycle Correction b To End Near 0.646

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The current structure of the AUDUSD pair suggests the formation of a zigzag a-b-c, which currently includes a bearish correction b. Wave b consists of primary sub-waves Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.

The last section of the chart shows the structure of the last primary wave Ⓩ. It seems to be an intermediate triple zigzag (W)-(X)-(Y)-(X)-(Z). To complete this correction pattern, a final actionary wave (Z) is needed. It seems that the wave (Z) will take the form of a minor double zigzag W-X-Y and will end near 0.646.

At that level, cycle correction b will be at 61.8% along the Fibonacci lines of cycle impulse wave a.

An alternative scenario shows the bearish wave Ⓩ of the primary degree has ended.

Thus, the primary wave Ⓩ is a double zigzag (W)-(X)-(Y) of the intermediate degree. Then prices moved higher to build the initial part of a new cycle wave c. This can take the form of a primary impulse.

Thus, in the next coming trading weeks, the currency pair could move in an upward direction.

The completion of the third primary wave is expected near 0.759. At that level, it will be at 161.8% of the first primary wave.

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