XAGUSD suggests the development of the corrective wave b, which is part of the global zigzag. Correction b most likely takes the form of a triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ. The first four primary waves are completed, and the last wave is still under construction|

It is assumed that the primary wave â“ will be a double zigzag of the intermediate degree (W)-(X)-(Y). After the end of the actionary wave (W), the price began an upward movement in the intervening wave (X). Like the wave (W), the intervening wave (X) may end in the form of a minor double zigzag W-X-Y.

The end of the bullish trend is expected near 24.793. At that level, wave (X) will be at 76.4% of wave (W).

Alternatively, the XAGUSD pair has completed the construction of an ascending intervening wave (X) of the intermediate degree. It has the shape of a double zigzag W-X-Y.

Thus, in the next coming trading days, we can expect a fall in XAGUSD and the formation of a bearish actionary wave (Y). Perhaps this wave will have a standard zigzag shape A-B-C, as shown in the chart.

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The first target, where the bears are aimed, is located at the previous low of 18.086, which was marked by the minor intervening wave X.

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.