On the 1H timeframe, NZDUSD seems to be forming a bearish trend, which may take the form of a double zigzag w-x-y of the cycle degree. The current chart shows the structure of the final wave y, which assumes a primary zigzag Ⓐ-Ⓑ-Ⓒ

On the 1H timeframe, NZDUSD seems to be forming a bearish trend, which may take the form of a double zigzag w-x-y of the cycle degree. The current chart shows the structure of the final wave y, which assumes a primary zigzag Ⓐ-Ⓑ-Ⓒ
On the 1H timeframe, NZDUSD seems to be forming a bearish trend, which may take the form of a double zigzag w-x-y of the cycle degree. The current chart shows the structure of the final wave y, which assumes a primary zigzag Ⓐ-Ⓑ-Ⓒ - 1

Most likely, the primary impulse wave Ⓐ and the bullish correction Ⓑ are fully completed, and the last impulse wave Ⓒ is currently under construction. Perhaps, after the end of the impulse decline in the intermediate wave (3), the development of an intermediate correction (4) began, the initial part of which hints at a double zigzag.

The end of the potential double zigzag is expected to reach 0.593. At that level, correction (4) will be at 61.8% of impulse (3).

On the 1H timeframe, NZDUSD seems to be forming a bearish trend, which may take the form of a double zigzag w-x-y of the cycle degree. The current chart shows the structure of the final wave y, which assumes a primary zigzag Ⓐ-Ⓑ-Ⓒ - 2

Alternatively, it is assumed that the market has already completed the formation of an intermediate correction (4), it has a standard zigzag shape.

Thus, once the correction has been completed, we can expect the development of a bearish final wave (5) of the intermediate degree.

The price within wave (5) may fall to 0.548. At that level, primary impulse waves Ⓐ and Ⓒ will be equal.

An approximate scheme of possible future movement is shown on the chart.

Jing Ren

Jing Ren

Jing-Ren has extensive experience in currency and commodities trading. He began his career in metal sales and trading at Societe Generale in London. Later on he worked as a senior analyst within the FX brokerage industry where he developed strategies in trading and risk management. With solid understanding of market dynamics he founded Wensfer to offer research and asset management services.