By Orbex
USDCNH suggests the construction of a large bearish impulse that consists of primary sub-waves ①-②-③-④-⑤.
On the current chart, we see a correction movement within the primary wave ④. This wave takes the form of a double three (W)-(X)-(Y) of the intermediate degree. The first two have ended, and now the formation of the final actionary wave (Y) is taking place.
It is likely that the wave (Y) is a small double zigzag W-X-Y. Whereas the actionary minor wave W and the intervening wave X are already complete.
The price increase could end at the level of 6.479, located on the resistance line.
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In an alternative scenario, the intermediate intervening wave (X), which is part of the primary fourth correction, is incomplete. This takes the form of a minor triple zigzag W-X-Y-X-Z.
Wave Z can take the form of a minute simple double zigzag ⓦ-ⓧ-ⓨ, for the completion of which the last actionary wave ⓨ is necessary.
The price drop in the potential impulse could reach the level of 6.298. At that level, wave Z will be at 61.8% of wave Y.
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Article by Orbex
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