The recent bullish move of this pair started from 158.40 level and went all the way to about 172.35 level (October 2022 high).
During this bullish move, the symbol completed three 1-2-3-4-5 subwaves and two A-B-C corrections between the subwaves. The first 1-2-3-4-5 subwave from 158.4 to 165.40 constitute the first impulsive wave of the major wave. The second 1-2-3-4-5 subwave from 162.85 level to 168, the second impulsive wave, and the third from 165.55 to 172.15, the third impulsive wave.
As a rule of thump, price usually corrects to wave 4 after (wave C of the A-B-C correction) before making the next move. The recent price action is showing that price is making a correction after the move from 158.4 to 172.35. The downward trend has completed a minor 1-2-3-4-5 wave followed by an A-B-C correciton to 170.6 level (which is also 0.618 fib correction of the downward move. If the 0.618 fib level which is also at same level as the wave 4 of the recent correction holds, by rule of wave analysis, I expect price to drop to 165.60 level which is also the wave 4 (or second A-B-C correction) of the major wave.
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During this bullish move, the symbol completed three 1-2-3-4-5 subwaves and two A-B-C corrections between the subwaves. The first 1-2-3-4-5 subwave from 158.4 to 165.40 constitute the first impulsive wave of the major wave. The second 1-2-3-4-5 subwave from 162.85 level to 168, the second impulsive wave, and the third from 165.55 to 172.15, the third impulsive wave.
As a rule of thump, price usually corrects to wave 4 after (wave C of the A-B-C correction) before making the next move. The recent price action is showing that price is making a correction after the move from 158.4 to 172.35. The downward trend has completed a minor 1-2-3-4-5 wave followed by an A-B-C correciton to 170.6 level (which is also 0.618 fib correction of the downward move. If the 0.618 fib level which is also at same level as the wave 4 of the recent correction holds, by rule of wave analysis, I expect price to drop to 165.60 level which is also the wave 4 (or second A-B-C correction) of the major wave.
If you like these analysis or they are helpful to you in anyway, please like and follow me, I will be making videos which explain wave analysis with chart patterns and fibs in depth soon.