Following is the weekly chart of USD/CNY, analyzed for the up move that started in Jan 2014. It appears like USD/CNY is making a 5 wave impulse wave pattern since then. This 5 wave pattern may be either forming wave 1 or wave A of a larger degree pattern. There is a possibility that this 5 wave pattern may be nearing completion, as per the wave counts shown. The likely targets for the completion of wave 1/A are :
- around 6.65 - 38.2% extension of wave 0-iii
- around 6.78 - 61.8% extension of wave 0-iii
- around 7 - 100% extension of wave 0-iii
The important thing is that, if this analysis is correct
- USD/CNY is likely to start a correction soon, once this up move is complete. Likely targets between 6.65 and 7.
- Also the said anticipated correction is not likely to take the value below the Jan 2014 level.
- After the anticipated correction is over, the USD/CNY is likely to resume up trend once again.
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