The current USDCNH wave structure suggests that we are at the beginning of a new bullish trend. This is likely to be a 5-wave impulse move consisting of primary waves ①-②-③-④-⑤.
With waves ① and ②completed, we can now expect the intermediate wave (1) to form a new high.
Intermediate wave (1) consists of five minor sub-waves. All minor waves, apart wave 4 and 5, have been completed.
When PA forms minor wave 4, we could then see minor 5 breaking new highs above 7.057. That is, above the previous high formed by primary wave ①.
An alternative view suggests that the bearish primary wave ② isn’t completed yet. The bearish pattern reminds a zigzag that consists of intermediate sub-waves (А)-(В)-(С).
In the scenario this structure is correctly identified, we can expect to see a decline in wave (C) towards the 6.905 region.
However, the likelihood of falling lower to 6.905 is high as this would be a duplication of wave (A).