The current USDCNH structure indicates that the market is currently forming the final part of a large bullish zigzag consisting of primary sub-waves Ⓐ-Ⓑ-Ⓒ.
Impulse wave Ⓒ consists of five intermediate sub-waves (1)-(2)-(3)-(4)-(5).
Most likely, the first four parts of this pattern were fully completed.
After completing the construction of the sideways correction (4), which took the form of a contracting horizontal triangle A-B-C-D-E, USDCNH began to move up in the initial part of the new bullish wave (5), which could take the form of a simple impulse.
The upcoming growth is possible in the area of the level of 7.223. At that level, intermediate wave (5) will be at 61.8% of previous impulse wave (3).
In this situation, an alternative scenario should be considered, according to which the formation of an intermediate sideways corrective wave (4) has not yet been completed.
If this assumption is correct, then wave (4) can take the form of a triple three consisting of sub-waves w-x-y-x-z of a cycle degree.
In the near future, the completion of the bullish intervening wave X at the level of 7.140 is possible, then the market may move down in the final wave Z near 7.066, i.e. to the level of the previous low that the wave Y formed.
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