By Orbex
The formation of the USDCNH currency pair involves the development of a large intervening wave x of the cycle degree. It is a primary double zigzag Ⓦ-Ⓧ-Ⓨ. The final primary wave Ⓨ is currently under development.
Apparently, wave Ⓨ takes the form of a triple combination (W)-(X)-(Y)-(X)-(Z). In early November, the intermediate wave (X), consisting of three main sub-waves W-X-Y, ended.
Then prices fell within the wave (Z). Currently, the minor sub-waves W-X, which form an intermediate double zigzag (Z) have ended. The price decline in wave Y could reach the level of 6.319. At that level, wave (Z) will be 76.4% of wave (Y).
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An alternative scenario hints at an almost completed cycle intervening wave x.
In this case, it has the form of a primary double zigzag Ⓦ-Ⓧ-Ⓨ. And its final wave Ⓨ is a double zigzag (W)-(X)-(Y) of the intermediate degree, for the construction of which the final section of the sub-wave Z is necessary.
The end of this wave is possible near 6.360. At that level, wave (Y) will be at 123.6% of wave (W).
After reaching the specified price level, we can expect a bullish cycle wave z to develop to a maximum of 6.528.
Article by Orbex
Orbex is a fully licensed broker that was established in 2011. Founded with a mission to serve its traders responsibly and provides traders with access to the world’s largest and most liquid financial markets. www.orbex.com
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