The current USDCNH structure indicates that the market has completed an intervening wave x of a cycle degree.
We are now in a bullish impulse wave Ⓐ of the primary degree, with intermediate sub-waves (1)-(2)-(3)-(4)-(5). It is likely that the market has completed the construction of the intermediate impulse (3).
Thus, in the short term, we could expect a small pullback in correction (4), which could be followed by continued growth in the intermediate wave (5).
With wave (5) coming up, prices can rise to the level of 6.570, which was marked by wave (2).
However, an alternative scenario indicates an incomplete cycle intervening wave x.
An intermediate correction (4) has formed as part of the final primary wave Ⓒ, which is a bearish impulse.
Wave (4) is similar to a minor triple zigzag, which is close to completion. If it ends soon, then the development of the bearish impulse Ⓒ in the intermediate wave (5) will continue.
Moreover, bears can send the market to 6.28. At that level, wave Ⓒ will be at the 38.2% Fibonacci extension of wave Ⓐ, which is not visible on the chart.
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