The USD/CNH pair appears to be facing ongoing downward pressure, with trading likely to remain within a range of 7.2300 to 7.2530. If the USD breaks below 7.2260, the next target is 7.2000.
In the near term, the USD traded between 7.2282 and 7.2533, closing marginally higher at 7.2467. Further sideways trading is anticipated as no significant trend emerges.
Longer Term Outlook
For a longer outlook, as long as the USD does not breach the resistance level at 7.2800, there remains a chance for a break below 7.2260, despite a slowdown in downward momentum.
We’re observing that the US dollar against the Chinese yuan is holding under noticeable downward strain. The trading range looks confined, with movement capped between 7.2300 and 7.2530. That said, if the dollar were to slip past the 7.2260 mark, the next clear target would be 7.2000, a level that hasn’t been tested in recent weeks.
Short-term, movement has been choppy but lacking a decisive shift. The dollar briefly dipped to 7.2282 before climbing back to close slightly firmer at 7.2467. Given this back-and-forth action, sideways trading appears to be the most reasonable expectation for now. Without a stronger directional push, the market seems content with holding within the current boundaries.
Resistance And Momentum
Looking further ahead, the resistance level at 7.2800 serves as an upper limit. Unless that threshold breaks, there’s still room for a push lower. However, the downward force that was evident before has lost some of its initial strength. If there’s another challenge of 7.2260, it will need to gather more momentum to sustain further losses beyond that point.
