The price action of the USDCNY continues to be developing a major 1-5 impulse wave pattern, as postulated by the Elliott Wave Theory. Given the declining bearish momentum in the short term, as underpinned by the MACD indicator, a pullback to the 61.8 per cent Fibonacci retracement level at 6.4156 is likely to ensue next.
This would serve as the second retracement leg (3-4) of the Elliott pattern. A potential reversal there would then underpin the likely beginning of the third impulse leg (4-5).
Bears can look for an opportunity to sell there on the expectations for a subsequent dropdown to the previous swing low at 6.3570.