The US Dollar is expected to test 7.1650 against the Chinese Yuan, but it’s unlikely to reach strong support at 7.1500. The outlook for the dollar is negative, with a slight chance of a longer-term decline. Recently, the US Dollar dropped to 7.1720, down by 0.46%. This decrease may stabilize soon, with resistance levels at 7.1870 and 7.1980. The stronger support level does not seem to be a concern right now.

1-3 Week Forecast

In the next 1-3 weeks, the US Dollar may fluctuate between 7.1850 and 7.2450. As long as it stays below 7.2070, the trend is likely to move downward, potentially reaching 7.1500. The recent drop in the Dollar-Yuan pair shows a small decline, closing weekly at around 7.1720 after falling almost half a percent. Resistance levels near 7.1870 and 7.1980 could cap any rebounds. Selling pressure hasn’t been strong, but weaknesses are still present, especially if 7.2070 holds. Recent trading shows that sellers are acting on strength rather than pushing major breaks lower, indicating that bullish momentum is fading. Looking ahead, we expect sideways movement to continue between approximately 7.1850 and 7.2450. The upper limit does not indicate a breakout is likely unless momentum increases. Until 7.2070 is decisively broken upwards, any upward shifts are expected to face resistance. This level marks the line between temporary pullbacks and a more consistent upward trend.

Longer-Term Outlook

For longer-term traders, the downside trend suggests a growing discomfort with Dollar strength. While 7.1500 remains a key support level, it is still some distance away from the current stabilization price. Entering positions at this level may be premature unless market volatility rises significantly. Resistance levels are clearer than support, making it less likely we’ll see an upward breakout. Currently, technical signals do not indicate strong upward momentum. We advise treating any rebounds within the prevailing range as chances to reassess positions, rather than signals for major reversals. It’s wise to keep positions light and set clear levels, ideally outside the range between 7.1850 and 7.2070. The chances of significant movement are low without new indicators, so attention to data releases or policy comments could be more important than typical technical analysis. In summary, momentum has weakened. Unless prices can push convincingly beyond the 7.2070 mark, the general outlook is negative. We will adjust our positions accordingly. Create your live VT Markets account and start trading now.

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