USDCNH Upside Part of Short or Deep Correction?

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The current USDCNH structure shows a bearish impulse. It consists of intermediate sub-waves (1)-(2)-(3)-(4)-(5).

At the time of writing, correction wave (4) is under construction. Wave (4) consists of minor sub-waves A, B, and C, and it resembles an upcoming flat pattern.

We expect a slight rise in wave C, near 7.031. The top is the high registered by wave A.

A decline in wave (5) near 6.906 could follow after that. The target would respect the tenancy of intermediate impulse waves (3) and (5) being equal.

usdcnh

An alternative scenario sees a bearish impulse in wave Ⓐ. This is part of a larger degree correction.

We expect a bullish correction in wave Ⓑ to follow the zigzag in wave Ⓐ . This consists of three intermediate waves (A), (B), and (C).

With wave (B) complete, we could expect impulse wave (C) to rise near 7.108. At that level, primary wave Ⓑ will be at 61.8% of impulse Ⓐ.

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