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The internal structure of the USDCNH pair hints at the primary zigzag pattern Ⓐ-Ⓑ-Ⓒ. This in the long term forms a cycle correction IV.

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

The current structure could indicate that bullish intermediate impulse (3) has ended. Currently, an intermediate correction wave (4) is forming. This takes the form of a minor double zigzag W-X-Y near 6.543. At that level, intermediate correction will be at 61.8% of impulse (3).

After the end of the correction (4), the final sub-wave (5) could move higher above the level of 6.839 marked by impulse (3).

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An alternative scenario shows that the construction of the entire cycle correction IV could already be completed. 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 forming the final cycle wave V.

Most likely, wave V will complete its development in the area of the previous minimum of 6.302, marked by impulse III. Moreover, at that level, wave V will be at 61.8% of impulse III. Therefore, the probability of achieving this coefficient is high.

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