In the long term, the USDCNH pair is expected to form a large double zigzag consisting of three cycle sub-waves w-x-y.
The actionary wave w took the form of a standard zigzag. The bearish intervening wave x may be fully constructed, since at the moment it is completed by a double zigzag of the primary degree Ⓦ-Ⓧ-Ⓨ.
Thus, 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.
Let’s consider an alternative scenario in which the price will move in a downtrend. Perhaps 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 to which the market may collapse is 6.591. It is determined using Fibonacci lines. At that level, wave x will be at 76.4% of wave w.
