In the medium term, USDCNH seems to be forming a cycle degree corrective wave (wave IV) consisting of primary sub-waves Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.
The main chart pattern shows that sub-waves Ⓦ, Ⓨ and Ⓩ are standard bearish zigzags. They all consist of intermediate sub-waves (A), (B) and (C).
At the time of writing, the final leg of the corrective structure (wave Ⓩ) is under development.
A closer look indicates that after the completion of the upside intervening wave Ⓧ, the market began correcting lower in order to construct the intermediate “three” pattern (A), (B), (C).
The 5-wave impulse wave (wave (A)) looks fully completed. The corrective wave (B), however, looks half-way through its potential upwards move, perhaps near 7.053. The said target would respect the tenancy of minor impulse waves A and C being equal.
Following the bullish move, we could expect a price depreciation to the lower-low level, which was formed by primary wave Ⓨ near 6.951.