By Orbex
The USDCNH formation hints at a zigzag consisting of primary sub-waves Ⓐ-Ⓑ-Ⓒ.
The last primary wave Ⓒ of this correction pattern takes the form of an intermediate 5-wave impulse (1)-(2)-(3)-(4)-(5).
The current structure indicates that the market has completed the bullish intermediate impulse (3). Soon, an intermediate correction (4) will form near 6.656, which will be at 23.6% of impulse (3).
After the end of sub-wave (4), prices are likely to rise to the level of 6.920. This is where wave (5) will be at 76.4% of impulse (3).
Free Reports:
Sign Up for Our Stock Market Newsletter – Get updated on News, Charts & Rankings of Public Companies when you join our Stocks Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
An alternative option assumes that the construction of a cycle correction IV will be completed much earlier than in the first option.
Most likely, in the primary impulse, sub-waves (1)-(2)-(3)-(4) have ended. It is possible that in the near future the bulls will continue to move the price up in the intermediate wave (5) to 6.797. At that level, wave IV will be at 61.8% of cycle impulse III.
After reaching the level of 6.797, a bearish trend is expected in the market within the cycle wave V. This could fall to the previous low of 6.306, or even lower.
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
- WTI oil declines on rising inventories and negotiations between Israel and Hamas. Rising unemployment in New Zealand may force RBNZ to start cutting rates earlier May 1, 2024
- Bitcoin stumbles below $60k ahead of Fed May 1, 2024
- Expert Says Now Looks Like a Good Time To Buy This Renewable Energy Stock Apr 30, 2024
- Optimism over corporate earnings is fueling stock indices. The Hong Kong index reached a 5-month high Apr 30, 2024
- FXTM’s Copper: Hits fresh two-year high! Apr 30, 2024
- European indices grow on the ECB’s “dovish” position. Quarterly reports of mega-companies support the broad market Apr 29, 2024
- Japanese yen shows volatility amid speculation of intervention Apr 29, 2024
- COT Bonds Charts: Speculator Weekly Changes led by 5-Year & 10-Year Bonds Apr 28, 2024
- COT Stock Market Charts: Speculator Bets led by VIX & Russell-Mini Apr 28, 2024
- COT Soft Commodities Charts: Speculator Bets led by Corn & Soybean Meal Apr 28, 2024