AUD/NZD made a choppy and three-legged decline down from former swing high of wave X, which was located at 1.1060 level. This three-wave drop can be part of wave Y, which can see limited downside and a reversal around the 1.0470 zone, where a completed Elliott wave ending diagonal can cause a sharp turn.
A later turn in impulsive fashion would suggest a minimum three-wave reversal towards 1.0825 region.
An ending diagonal is a special type of pattern that occurs at times when the preceding move has gone too far too fast, as Elliott put it. A very small percentage of ending diagonals appear in the C wave position of A-B- C formations. In double or triple threes, they appear only as the final “C” wave. In all cases, they are found at the termination points of larger patterns, indicating exhaustion of the larger movement.
Elliott wave ending diagonal: