The USDCNH formation shows the primary zigzag pattern Ⓐ-Ⓑ-Ⓒ, which in the long term seems to be forming a cycle correction IV. This pattern today looks completed in two parts out of three.
The last primary wave Ⓒ 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, two parts are needed – sub-waves 4 and 5. Growth in these parts is possible to the level of 6.981.
At that level, sub-wave (5) will be at 76.4% of wave (3).
An alternative option shows that the construction of the entire cycle correction IV has already been 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, the market may begin to move in a downward direction, forming the final cycle wave V.
Most likely, wave V will have the form of a primary impulse, as shown in the chart. And it will complete its pattern near 6.365. At that level, sub-wave V will be at 61.8% of impulse III (it is not visible on the chart).
