The USDCNH structure above hints to a bearish zigzag consisting of primary waves Ⓐ-Ⓑ-Ⓒ.
Waves Ⓐ and Ⓑ are fully completed, whereas Ⓒ is still under construction.
As part of wave Ⓒ, we can see a smaller degree move, an intermediate 5-wave motion.
The current upside move could be completed near 6.895 as part of wave (4). This target would respect the tenancy of wave (4) correcting 0.382% of waves (3).
A different view suggests an alternative scenario that sees intermediate wave (3) as incomplete.
If the hypothesis is correct, we are now correcting towards 6.878, which is the highest level that can be reached for the impulsive nature of this bearish wave to be respected.
A successful test of the 6.878 could let prices slid lower within a bearish 5-wave impulse ⓥ near 6.830.
The target of 6.830 would respect the tenancy of impulses ➂ and ➄ being equal.