The US Dollar (USD) is slowly gaining against the Chinese Yuan (CNH), which may create a trading range between 7.1220 and 7.1340, rather than a strong upward trend. Analysts from UOB Group suggest that the USD could try to reach the 7.1370 mark, but there’s no strong momentum yet. In the last 24 hours, the USD was expected to rise above 7.1280 but was predicted not to hold this level. It peaked at 7.1290 and closed at 7.1265, showing only a tiny increase in strength.

Analysis Over 1-3 Weeks

Looking ahead 1-3 weeks, upward momentum is growing but not strong enough for a lasting rise. The USD must close above 7.1280 to aim for 7.1370, provided it doesn’t drop below 7.1020. A close over 7.1280 is positive but not definitive, with the recent close at 7.1265. If the USD drops below 7.1140, the current slight upward pressure will likely diminish. We see a slight upward trend in the US Dollar against the Yuan, suggesting potential opportunities in the coming weeks. Traders may consider purchasing short-term call options targeting the 7.1370 level. This outlook is supported by the latest US jobs report, showing an unexpected gain of 210,000 jobs in October 2025, indicating the Federal Reserve might hold off on rate cuts. Recent data from China strengthens the case for a stronger USD. The Caixin Manufacturing PMI for October 2025 unexpectedly fell to 49.8, signaling a slight contraction and leading to speculations that the PBoC will continue its supportive policy. This difference in policies between the US and China typically favors a higher USD/CNH.

Strategic Approach and Recommendations

A smart strategy would be to wait for a clear daily close above 7.1280 to confirm the upward trend before making new moves. This level is crucial for targeting 7.1370. On the other hand, if the pair drops below the 7.1140 support level, the current upward pressure may decrease. Looking back, a similar trend happened in late 2023 when USD/CNH gradually rose before facing resistance above 7.15. Current analysis does not predict a strong surge, so using options strategies that aim for a steady rise seems wise. This approach helps manage risks during what is expected to be a controlled upward movement. Create your live VT Markets account and start trading now.

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