Forex Trading Library

USDCNH Correction To End Near 6.897

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The internal USDCNH structure hints at a zigzag pattern Ⓐ-Ⓑ-Ⓒ. This zigzag today looks completed in two parts out of three.

The last primary wave Ⓒ takes the form of an intermediate 5-wave impulse (1)-(2)-(3)-(4)-(5).

The current structure could indicate that the market has completed the construction of a bullish intermediate impulse (3). Most likely, an intermediate correction (4) is forming in the market. This takes the form of a double zigzag W-X-Y towards the 6.601 area. At that level, intermediate correction will be at 50% of impulse (3).

After the end of the correction (4), it is possible that the price will rise to 6.897. This is where wave (5) will be at 61.8% of impulse (3).

An alternative scenario suggests that the construction of the entire cycle correction IV has already been completed.

Thus, in the last section of the chart, we can observe the development of the initial part of the cycle wave V. Perhaps this wave will take the form of a 5-wave impulse ①-②-③-④-⑤, as shown in the chart.

It is assumed that the potential impulse will end at a minimum of 6.306. This was marked by the cycle impulse wave III.

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