Insights 
VT 
The US Dollar (USD) is predicted to potentially move higher against the Chinese Yuan (CNH), possibly exceeding the 7.1550 level. Analysts suggest a longer-term increase towards 7.1650, contingent on momentum building without falling below 7.1380.
Within the previous 24-hour range, USD moved between 7.1362 and 7.1490, closing at 7.1463, up by 0.07%. The current forecast indicates an upward trend if USD does not breach a minor support level at 7.1420.
Momentum and Resistance Levels
In the one to three-week forecast, previous momentum buildup noted required holding above 7.1480. The recent high reached was 7.1490 before closing just slightly lower at 7.1463. A break beyond 7.1330 would imply momentum reduction, whereas potential USD movement could target 7.1650.
The FXStreet Insights Team curates expert market observations. The article discusses USD/CNH progression, without offering direct investment advice. All market movements carry risks, and independent research is recommended before making investment decisions. The views presented are not necessarily aligned with those of FXStreet.
Based on the current momentum, we see the US dollar likely strengthening against the offshore Chinese yuan in the near future. Derivative traders could consider strategies that profit from a rise in the USD/CNH pair, initially targeting a move above the 7.1550 resistance level. This view is supported by a tentative buildup in upward price action over the past few days.
This outlook aligns with recent economic data from Q3 2025, which shows a divergence between the two economies. China’s latest Caixin Manufacturing PMI barely held above the 50-point mark separating growth from contraction, reflecting lingering effects from the property sector slowdown we saw back in 2023 and 2024. Meanwhile, the U.S. economy has shown more resilience, keeping the interest rate differential in favor of the dollar.
Market Sentiment and Strategy
The broader market sentiment also points to dollar strength, as traders seek safety amidst uncertainty. We are seeing this risk-averse behavior with Gold prices surging past $4,000 an ounce and the Dow Jones struggling to find its footing. Historically, during periods of global economic stress, capital tends to flow into US dollar-denominated assets, reinforcing the currency’s value.
For options traders, this suggests looking at call options with strike prices aiming for the 7.1650 level within a one-to-three-week timeframe. To manage risk, we must keep an eye on key support levels. A drop below 7.1330 would indicate that this upward momentum is easing, prompting a reassessment of any bullish positions.
