The current USDCNH structure suggests that the cycle degree triple zigzag w-x-y-x-z completed and markets have reversed into a bullish trend.
This primary degree 5-wave upside consists of waves ①-②-③-④-⑤.
With waves ① and ②fully completed we can now expect intermediate wave (1) of ③ to take place.
As part of (1), we can expect to see the last minor degree wave of the impulse move. The minor wave 5 is unlikely to end with a truncation, so, at any level above the previous high, we could since the termination of the 5th wave.
Any 5-wave structure, however, can have any of its impulse waves extended, and this brings forward an alternative scenario where the intermediate wave (1) is already completed.
In this case, the bearish correction into wave (2) looks incomplete. The ‘three’ pattern consists of minor waves A-B-C and is likely to take a standard zigzag formation.
This pattern could be completed near 6.994. At that level, intermediate wave (2) will be at the 61.8% Fibonacci retracement of intermediate wave (1).
This golden ratio test is very common in corrections, so the probability of completing the decline at the said level is high.