Forex Trading Library

USDCNH Bearish Impulse Ⓒ Complete?

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The current USDCNH structure indicates the formation of a large bearish zigzag x of a cycle degree. This consists of primary sub-waves Ⓐ-Ⓑ-Ⓒ. The sub-waves Ⓐ and Ⓑ have ended.

The primary wave Ⓑ completed in the form of a bullish zigzag consisting of intermediate sub-waves (A)-(B)-(C).

The large bearish impulse Ⓒ is currently under construction. This impulse consists of intermediate sub-waves (1)-(2)-(3)-(4)-(5).

During the next coming trading days, the market will continue to move down to the 6.284 area. At that level, entire wave Ⓒ will be at 38.2% of large bearish impulse Ⓐ.

Thus, in the medium term, it is possible to open short positions in order to profit from the movement in the intermediate impulse (5).

USDCNH

An alternative scenario indicates that it is possible that the entire bearish primary impulse formation Ⓒ has already been fully completed.

If this hypothesis is correct, then we can conclude that the intervening wave x of a cycle degree has also completed its construction. It follows that a small rise in the market in the last section could be an intermediate impulse (1). After which the price began to decline in the correction (2).

Wave (2) is most likely a zigzag consisting of minor sub-waves A-B-C.

Therefore, price could rise in a new bullish impulse (3) above the maximum formed by the minor wave 4 above 6.494.

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