AUDUSD: The market may collapse to the previous low
|In the long term, AUDUSD seems to be forming a bearish triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ, where the primary wave Ⓩ is a simple zigzag (A)-(B)-(C). The intermediate wave (B) of this zigzag took the form of a simple bullish zigzag A-B-C.
At the moment, an impulse wave (C) is being formed, which consists of minor sub-waves 1-2-3-4-5. Minor wave 3 consists of five minute sub-waves.
Most likely, the minor correction wave 4 was completed not so long ago, so the market may continue to move down in the impulse wave 5.
The currency is expected to decline to the previous low of 0.617, marked by impulse 3.
An alternative scenario shows that the correction wave 4, which is currently being formed, has not yet been fully completed. This wave may take the form of a longer one than in the main version.
Bulls could build only two parts of correction 4, that is, we could see fully formed sub-waves ⓦ-ⓧ, the sub-wave ⓨ is still being built, but is already close to its completion.
In the near future, the market may grow to 0.681. At that level, corrective wave 4 will be at 76.4% along the Fibonacci lines of previous bearish impulse 3. Then, after the full completion of wave 4, we can expect a decline in the minor wave 5.
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