The US Dollar is expected to trade between 7.1220 and 7.1320. Analysts predict that in the long run, the USD might drop to 7.1130. If it falls below this level, the next focus could be on 7.1000. In the last 24 hours, the USD traded within a narrow range of 7.1244 to 7.1298, giving no fresh clues about its direction. Looking at the next 1-3 weeks, the USD may stay within this range as long as it does not break the strong resistance at 7.1400.

Fxstreet’s Insight

FXStreet’s Insight Team gathers market insights from experts, but they caution that these predictions are not investment advice. All trading decisions should be based on personal research, as the information carries risks and uncertainties. FXStreet specifies that the information is for informational purposes only and not a recommendation to buy or sell assets. They will not be responsible for any errors, omissions, or losses that come from using this information. It is advisable for individuals to conduct thorough research before making investment choices. Currently, we see the USD/CNH pair trading within a tight range of 7.1220 to 7.1320. The recent price movements have been calm, but our outlook over the next few weeks leans toward a weaker dollar. This view is supported by last week’s US core inflation data for September 2025, which showed a slightly cooler rate of 2.8%, easing pressure on the Federal Reserve.

Strategies For Traders

For those trading derivatives, this suggests buying puts or creating bearish option spreads on USD/CNH could be effective. We aim for a drop to 7.1130, and if the pair decisively breaks below that level, it could lead to a move to 7.1000. Reflecting on the wider swings of 2023, when the pair topped 7.30, the current consolidation may signal an upcoming decline. It’s crucial to manage risks, and our bearish outlook would be invalid if the pair breaks above strong resistance at 7.1400. If it does, it would indicate newfound strength for the dollar, requiring a reevaluation of any short positions. Options traders could use this level to set the strike price for selling call spreads, generating premium while keeping a bearish stance. This view is further supported by signs of a stabilizing Chinese economy. Earlier this month, China confirmed its Q3 2025 GDP growth at a solid 4.9% year-over-year. The People’s Bank of China continues to provide targeted support, and the latest trade balance figures for September 2025 showed a surprising increase in exports. This contrasts with the slowing economic momentum in the US, suggesting that the yield differential may no longer favor the dollar as strongly as it did in early 2024. Create your live VT Markets account and start trading now.

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