The current USDCNH structure shows an a-b-c zigzag, with waves a and c being 5-wave impulses.
Bearish correction b has recently completed as a zigzag consisting of sub-waves Ⓐ-Ⓑ-Ⓒ.
Currently, we see the initial part of cycle wave c.
We can expect prices to extend up to 7.19 which was a previous high formed by wave a.
An alternative scenario shows that wave b has not yet completed. In this case, it takes a triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ formation.
We see that the first three parts have ended. Whereas the intervening wave Ⓧ has another leg to the upside to complete.
In the short-term, the price could rise to the 6.84 area. At that level, wave Ⓧ will be at 38.2% of primary wave Ⓨ.
After that, we expect a market reversal and the beginning of the final wave Ⓩ towards the 6.60 area.
At that level, correction b will be at 61.8% Fibonacci of wave a.
