The current USDCNH formation hints to a bullish zigzag pattern which consists of primary waves Ⓐ-Ⓑ-Ⓒ.
Wave Ⓐ is a 5-wave impulse and wave Ⓑ is a triple zigzag. The latter consists of intermediate waves (W)-(X)-(Y)-(X)-(Z).
Currently, prices are structuring a bullish (1)-(2)-(3)-(4)-(5) impulse in wave Ⓒ .
The first four parts of the intermediate degree pattern seem fully completed. We are now in the intermediate wave (5) which could take the form of an ending diagonal.
In the medium term, we expect prices to rise in wave (5) near 7.174. At that level, minute wave ⓒ will be at the 76.4% of wave ⓐ.
However, we must consider an alternative scenario. Here, the intermediate wave (4) took the form of a triple zigzag.
After completing this triple combination markets began to move up, forming a 5-wave impulse in (5).
We could see the end of the impulse wave (5) near the 7.234 area. The projected target would respect the tenancy of wave (5) being extended 76.4 % when compared to wave (3).