UOB Group analysts suggest that the USD may decline further, facing resistance at 7.0885.

    by VT Markets
    /
    Nov 14, 2025
    ### USD/CNH Market Insights FXStreet shares insights from various analysts to help understand market changes. These insights are meant to assist in currency trading, but they do not give specific investment advice. The US dollar is falling quickly against the offshore yuan, and we expect this trend to keep going in the next few weeks. The dollar dropped to 7.0918 faster than we thought, indicating strong downward momentum. We are now focusing on the key support level of 7.0885 as the next target. ### Broader Economic Trends This outlook aligns with broader economic trends we’ve seen since 2024. China’s targeted stimulus appears to be working, with their Q3 2025 GDP at 4.9%, slightly above expectations. Meanwhile, the US Federal Reserve’s ongoing dovish stance, maintaining rates at 4.75% last week, puts continued pressure on the dollar. For traders, consider positioning for more USD/CNH weakness using options. Buying put options with strike prices close to 7.0900 could be a smart strategy. The market is already oversold, which might slow the decline. Additionally, creating a bear put spread by selling a lower strike put could lower the initial premium cost. It’s important to manage risk by monitoring the 7.1170 level, which is now seen as strong resistance. If the price goes above this level, it would contradict our bearish view and indicate it’s time to exit short positions. As long as the pair remains below this level, we will keep our negative outlook. The dollar’s weakness is affecting other currencies too, such as the Australian and New Zealand dollars. The broader US Dollar Index (DXY) has dropped about 1.5% just in November 2025, sitting near 102.50. This overall decline of the greenback strengthens our belief that USD/CNH is likely to continue lowering. **Create your live VT Markets account and start trading now.**

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