USDCNH: 5-Wave Impulse Could Lead To Fresh Highs

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The current USDCNH structure suggests that the primary Ⓐ-Ⓑ-Ⓒ zigzag is currently forming.

Waves Ⓐ and Ⓑ are fully completed, whereas wave Ⓒ consisting of intermediate sub-waves (1)-(2)-(3)-(4)-(5) is still under development.

After the end of the intermediate correction (4), we could see how the bullish impulse (5) tries to complete the primary wave Ⓒ.

In the short term, there may be growth in the 7.1653 area, the previous high formed by bullish impulse (3).


In this situation, we should consider an alternative scenario.

According to the alternative, intermediate corrective wave (4) has not yet been completed.

Based on this wave structure, we can conclude that this correction looks like a triple combination W-X-Y-X-Z.

In the short term, the market may grow in a bullish intervening wave X to 7.1170. The target is the resistance line.

Then we could expect a price decline in wave Z to 7.0250. At that level, the support line is drawn through the previous peaks.


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