The US Dollar (USD) is expected to rise against the Chinese Yuan (CNH), possibly surpassing the 7.1550 level. Analysts predict a longer-term increase toward 7.1650, as long as the dollar maintains momentum and stays above 7.1380. In the last 24 hours, the USD fluctuated between 7.1362 and 7.1490, closing at 7.1463, which is a 0.07% increase. The current outlook points to a continued rise if the USD does not fall below the minor support level at 7.1420.

Momentum and Resistance Levels

For the next one to three weeks, the USD needs to stay above 7.1480 for momentum to continue. The highest point recently was 7.1490, and it closed just below that at 7.1463. Falling below 7.1330 could signal a loss of momentum, while the USD may target 7.1650. The FXStreet Insights Team offers expert analysis on market trends. This article focuses on the USD/CNH movement without giving direct investment advice. Remember that all investments involve risks. It’s wise to do your independent research before making decisions. The opinions here may not reflect those of FXStreet. Given the current momentum, the US dollar is likely to strengthen against the offshore Chinese yuan soon. Traders in derivatives could explore strategies to benefit from a rise in the USD/CNH pair, initially aiming for the resistance at 7.1550. Recent price action shows a tentative upward trend. This projection corresponds with recent Q3 2025 economic data, highlighting a split between the two economies. China’s Caixin Manufacturing PMI barely stays above the 50-point threshold, signaling stagnation while feeling the ongoing impact of the property sector slump from 2023 and 2024. Conversely, the U.S. economy remains more resilient, supporting a favorable interest rate difference for the dollar.

Market Sentiment and Strategy

Overall market sentiment hints at dollar strength, with traders seeking safe-haven investments amid uncertainty. This risk-averse trend has led Gold prices to rise above $4,000 an ounce, while the Dow Jones struggles. Typically, during global economic stress, investors flock to US dollar-denominated assets, enhancing the dollar’s value. For options traders, consider focusing on call options targeting the 7.1650 level within a one to three-week period. To manage risk, monitor key support levels. If the USD falls below 7.1330, it could indicate a slowdown in upward momentum, prompting a reevaluation of bullish positions. Create your live VT Markets account and start trading now.

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