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The USDCNH prices have risen from the $6.45 low in July to $6.50.

However, bulls might be in for a surprise. The short-term structure resembles a somewhat clear correction in wave 2 of (1) of Ⓨ.

As the pair did not correct into deep territories in wave ⓑ, price action hints at a simple zigzag. Should prices move closer to 90%, it would then point at a flat instead.

For the time being, since the correction seems complete, market participants can expect a 5-wave impulse towards 61.80% of wave 1, near $6.41.

The projection is a frequent guideline in corrective wave 2s.

However, any fresh low below wave ⓐ could fulfill this requirement. It would be then recommended to focus on where the 5^th internal structure begins to project its end.

(Click on image to enlarge)

With no interaction between the upside waves starting at the low of $6.45, wave 2 might be in already.

If prices remain above wave (i) in a potential bearish leg, then the probability of upwards continuation in that scenario will increase.

If, however, prices do interfere with wave (i), then most likely the main scenario will ensue.

The very short-term in the minute degree (pink label) suggests that an ending diagonal could form in wave (v) of ⓘ.

Therefore, we can expect a correction in this scenario as well. However, in this case, its completion will likely lead to further upside prior to printing fresh lows below $6.45.