Forex: Possible Scenarios For USD/CNH (US Dollar To Chinese Renminbi)

The current formation of the USDCNH shows the primary zigzag pattern â’¶-â’·-â’¸, which in the long term seems to be forming a large correction IV of the cycle degree. This pattern today looks completed in two parts out of three - 1

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

Perhaps the last intermediate wave (5) is currently under development. It is assumed that it will take the form of a minor impulse 1-2-3-4-5. For its full completion, a sub-wave 5 is needed. The growth in this wave may continue to 7.097.

China

At that level, sub-wave (5) will be at 100% of wave (3).

An alternative scenario shows that the construction of the entire cycle correction IV has already been fully completed. It took the form not of a simple zigzag, but of a double zigzag consisting of primary sub-waves â“Œ-â“-â“Ž.

If this assumption is correct, then the market may begin to move in a downward direction, forming the final cycle wave V.

Most likely, the wave V will have the form of a primary impulse, as shown in the chart. And it will finish its pattern near 6.572. At that level, sub-wave V will be at 50% of impulse III.

Jing Ren

Jing-Ren has extensive experience in currency and commodities trading. He began his career in metal sales and trading at Societe Generale in London. Later on he worked as a senior analyst within the FX brokerage industry where he developed strategies in trading and risk management. With solid understanding of market dynamics he founded Wensfer to offer research and asset management services.