USD/CNH: bulls are preparing for a new zigzag pattern Ⓐ-Ⓑ-Ⓒ
USDCNH seems to be forming a double zigzag of the cycle degree w-x-y.
The first large wave w is completed in the form of a standard zigzag, the bearish intervening wave x could also be fully constructed, since at the moment it looks completed with a double zigzag of the primary degree Ⓦ-Ⓧ-Ⓨ.
In the near future, market participants may expect bullish growth in the actionary wave y. Perhaps it will take the form of a standard zigzag Ⓐ-Ⓑ-Ⓒ.
Most likely, we will see the end of the first primary wave Ⓐ at the maximum of 7.00, or a little higher.
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In the second scenario, the price may move in a downtrend. The cycle intervening wave x is not yet complete, most likely, it will take the form of a triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ, not a double one.
If the actionary wave Ⓨ is completed, then a slight increase in the second intervening wave Ⓧ is expected in the near future, after which the fall can be continued in the final primary wave Ⓩ.
The approximate level of market decline is 6.590. It is defined using Fibonacci lines. At that level, wave x will be at 76.4% of wave w.
Author
Jing Ren
Orbex
Jing-Ren has extensive experience in currency and commodities trading. He began his career in metal sales and trading at Societe Generale in London.
