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The USDCNH formation shows the primary zigzag pattern Ⓐ-Ⓑ-Ⓒ. In the long term this seems to be forming a cycle correction IV.

The last primary wave Ⓒ takes the form of an intermediate 5-wave impulse (1)-(2)-(3)-(4)-(5).

The final intermediate wave (5) will take the form of a minor impulse 1-2-3-4-5. Sub-waves 4 and 5 could push to the level of 6.981.

At that level, sub-wave (5) will be at 76.4% of wave (3).

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An alternative option shows that the construction of the entire cycle correction IV has already ended. It took the form not of a simple zigzag, but of a double zigzag consisting of primary sub-waves Ⓦ-Ⓧ-Ⓨ.

Thus, if this assumption is correct, prices could move lower and form the final cycle wave V.

Most likely, wave V will have the form of a primary impulse and will end near 6.365. At that level, sub-wave V will be at 61.8% of impulse III.

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