The AUDUSD structure shows a bearish impulse consisting of waves ①-②-③-④-⑤.
The first four parts of the primary degree pattern appear to be fully completed.
At the time of writing, the intermediate wave (1) of ⑤ is complete. Correction wave (2) of the intermediate degree move is under development.
The end of wave (2) could take prices up to 0.650. Here, wave (2) will be at 61.8% of wave (1).
After this correction, we could see a decline in wave (3). That could take us beyond intermediate wave (X)’s low. In other words, below 0.625.
Let’s consider an alternative scenario, as seen above. According to this, the development of primary correction ④ has not yet completed.
The structure of the intermediate degree correction suggests a triple zigzag as indicated by waves (W)-(X)-(Y)-(X)-(Z).
As part of the last corrective move upwards, we could expect a short-term upside in wave (Z) above 0.656 or even higher.
This level, the previous high recorded by minor wave A, will have to break to validate wave C.
Test your strategy on how the AUD will fare with Orbex - Open Your Account Now.
