The USDCNH pair could be forming a large horizontal correction wave ④ of the primary degree. This takes the form of an intermediate double three (W)-(X)-(Y).
At the time of writing, we are in the final part of the intermediate intervening wave (X). Only the second half of this wave is visible on the 1H timeframe chart. Most likely, wave (X) takes the form of a triple zigzag W-X-Y-X-Z.
It is likely that the wave Z can be simple in shape and take the form of a minute zigzag ⓐ-ⓑ-ⓒ. Thus, in the near future, we can expect a downward price movement in the impulse minute wave ⓒ.
The market is likely to fall to the level of 6.238. This is where the minor wave Z will be at 100% of actionary wave Y.
Let’s consider the second option, where the intermediate intervening wave (X) could already be complete.
Thus, in the last section of the chart, the development of the initial part of the intermediate actionary wave (Y) is noticeable. This is the final leg in the primary correction wave ④.
There is a possibility that the intermediate wave (Y) will take the form of a double W-X-Y zigzag. At the time of writing, a minor wave W has begun, taking the form of a minute standard zigzag.
This price could reach the previous maximum of 6.529, shown by wave (W).
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