By Orbex – The current NZDUSD structure hints to a bullish combination consisting of primary sub-waves Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.
Wave Ⓨ looks fully completed, whereas Ⓧ is still under construction. That could be followed by wave Ⓩ.
The aforementioned scenario sees wave Ⓧ consisting of intermediate degree sub-waves (W)-(X)-(Y)-(X)-(Z).
If this pattern turns out to be validated, we could see a slight decline in the minor zigzag A-B-C near the 0.659 area. That level will be 38.2% retracement of the first intervening wave Ⓧ.
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The closest alternative sees the current intervening wave Ⓧ as a standard zigzag, consisting of intermediate waves (A)-(B)-(C).
This scenario would have prices sliding lower in a bearish 5-wave impulse (C) near the 0.653 area. The target would respect the 50% Fibonacci retracement when comparing sub-waves Ⓧ and Ⓨ.