The current structure on USDCNH points to a leading diagonal. The bearish pattern consists of cycle waves I-II-III-IV and V.
At the time of writing, all primary waves but ⑤ have been completed their course successfully.
The final primary wave ⑤ could find support near 6.894. That target would respect the tenancy of wave ⑤ being equal to wave ➂.
If the diagonal ends near the specified level, the cycle degree waves will also be respecting the guideline of wave V being at 161.8% Fibonacci extension of I-II.
An alternative scenario sees the cycle-degree structure as a bullish correction. With that in mind, wave IV would take a double three Ⓦ-Ⓧ-Ⓨ formation.
In that case, a slight decline near 6.946 would be possible, where intermediate wave (B) will be at the 78.6% of bullish wave (A).
We would then expect the market to appreciate in a (C) impulse near 7.048. At that level, (C) would be equal to the wave (A).
