USD/CNH: Impulse growth nears completion level
In the long term, the USDCNH pair may build a double zigzag of the cycle degree w-x-y. In February, the bearish intervening wave x, which has the form of a double zigzag Ⓦ-Ⓧ-Ⓨ of the primary degree, ended.
It is assumed that the initial part of the actionary wave Y is being constructed on the last section of the chart. Perhaps it will take the form of a standard zigzag Ⓐ-Ⓑ-Ⓒ.
Now the first wave Ⓐ is being formed, the structure of which hints at an impulse (1)-(2)-(3)-(4)-(5). Recently, the sideways correction (4), which has the form of a double three, could have ended.
It is possible that the price will go up in impulse (5) approximately to 7.098. At that level, wave (5) will be at 123.6% of impulse (3).
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Alternatively, the construction of a cycle intervening wave x may continue. It can be more complex in its structure and take the form of a triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.
In this case, the primary intervening wave Ⓧ, which has the form of an intermediate triple zigzag (W)-(X)-(Y)-(X)-(Z), could end. And now the market may be in the actionary wave Ⓩ, at its beginning.
It is assumed that the wave Ⓩ will take the form of a standard zigzag, as shown in the chart. Its end is expected near 6.572. At that level, it will be at 76.4% of wave Ⓨ.
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.
