The current chart of the USDCNH currency pair shows the development of the correction pattern – the primary zigzag Ⓐ-Ⓑ-Ⓒ. This primary construction today looks completed in two parts out of three.
The last bullish wave Ⓒ seems to take the form of an intermediate 5-wave impulse (1)-(2)-(3)-(4)-(5).
It is possible that the last intermediate wave (5) is currently under development. It may take an impulse form, or the form of an ending diagonal. The growth in this wave is likely to continue to 7.268.
The indicated level is the maximum, which was marked by the previous impulse sub-wave (3).
An alternative scenario shows that the currency pair may continue the correction wave (4) of the intermediate degree. It is assumed that it will take the form of a standard minor zigzag A-B-C, where wave A is the leading diagonal.
Using the Fibonacci line tool, we can predict the end of wave (4). Most likely, it will be at 50% of bullish impulse wave (3), which, according to statistics, is most often found in impulse patterns. Therefore, its end can be expected near 6.984.
An approximate scheme of possible future movement is shown on the chart.
