On the 1H timeframe, the USDCNH pair has completed the cycle intervening wave x. Following this, the construction of the initial part of the final cycle wave z began.
Wave z could have a complex double or triple zigzag formation. The first sub-wave of the primary degree is currently under development. This can take the form of an intermediate (A)-(B)-(C) zigzag.
Wave (A) is a bullish 5-wave impulse, whereas correction wave (B) is a double zigzag that seems to be fully completed.
Thus, in the next coming trading days, we could see an increase in impulse (C) to the 6.625 area. At that level, wave (C) will be at 76.4% of wave (A).
However, there is a possibility that the corrective wave (B) of the intermediate degree is not a double zigzag, but a triple one.
In this case, we could see the end of the second minor intervening wave X. Then bears could lead the price down in wave Z to 6.442.
At that level, corrective wave (B) will be at 76.4% of intermediate impulse wave (A).
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