By Orbex
The formation of the USDCNH currency pair suggests the development of a large intervening wave x of a cycle degree. It assumes a primary double zigzag Ⓦ-Ⓧ-Ⓨ. And the final primary wave Ⓨ is currently under construction.
In the short term, we can expect the completion of intermediate intervening wave (X) that takes the form of double zigzag W-X-Y near 6.428. At that level, it will be at 50% of wave (Y).
After reaching the specified price level, the market can turn around and start moving within the final actionary wave (Z) towards the 6.307 area. At that area, intermediate sub-waves (Z) and (Y) will be equal.
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An alternative scenario hints at the completed cycle intervening wave x. Here it has the form of a primary double zigzag Ⓦ-Ⓧ-Ⓨ. Its final wave Ⓨ is a double zigzag (W)-(X)-(Y) of the intermediate degree.
Thus, in the next coming trading days, market participants can expect the market to rise and the formation of a cycle wave Z.
Most likely, prices, along with the wave Z going up, will update the previous high 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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