The current USDCNH formation hints at a global cycle correction b, which takes the form of a primary triple zigzag.
The final primary wave Ⓩ is an intermediate standard (A)-(B)-(C) zigzag. Wave (A) is a fully completed bearish impulse, whereas wave (B) is a bullish zigzag correction.
Should prices continue to move down, we could see the formation of the final impulse 5 of the minor degree. This will complete the intermediate wave (C) near 6.331.
At that level, wave 5 will be at 76.4% of wave 3.
Should the market move in an upward direction, then it is worth assuming that the formation of a minor correction 4 is not yet complete.
In this case, wave 4 will have the form of a triple three. In its composition, the first four-minute sub-waves are fully complete.
We are now at the beginning of the bullish wave ⓩ, with prices likely to rise to the 6.529 area. At that level, correction 4 will be at 50% of impulse 3.
Finally, we could expect a decline below the minimum formed by the minor wave 3.