The current USDCNH structure hints to the formation of a corrective wave b. The market saw a decline after completing the bullish impulse a.
Wave b is a double zigzag and consists of primary sub-waves Ⓦ-Ⓧ-Ⓨ. The intermediate impulse (A) is complete which is part of zigzag Ⓨ.
In the short term, we can expect prices to rise in correction wave (B) to 6.949. At that level, (B) will be at 61.8% of impulse (A).
Following this, a decline in wave (C) near 6.601 could be expected.
An alternative scenario indicates that wave b could take the form of a simple zigzag Ⓐ-Ⓑ-Ⓒ.
The final part of the primary impulse Ⓒ is currently under development. This consists of intermediate sub-waves (1)-(2)-(3)-(4)-(5).
Once wave (4) is completed we could expect a decline in wave (5) to 6.711.
At that level, cycle correction b will be at 50% of impulse a.