Insights 
VT 
The US Dollar is expected to trade between 7.1220 and 7.1320. Analysts suggest that in the longer term, the USD could drop to 7.1130; a clear break below this level may shift the focus to 7.1000.
In a 24-hour view, the USD traded tightly between 7.1244 and 7.1298, offering no fresh clues for direction. In the 1-3 week forecast, the USD might continue to trade within the indicated range if the ‘strong resistance’ at 7.1400 remains unbreached.
Fxstreet’s Insight
FXStreet’s Insight Team curates market insights from renowned experts, noting that these predictions do not constitute investment advice. All trading decisions should be based on individual research, and the provided information involves risks and uncertainties.
FXStreet explicitly states that the information provided is for informational purposes only and not a recommendation to buy or sell assets. The organisation will not be liable for any errors, omissions, or losses arising from the use of this information. It is recommended that individuals conduct thorough research before making investment decisions.
We see the USD/CNH pair trading within a tight range for now, likely between 7.1220 and 7.1320. Recent price action has been quiet, but our underlying view for the next few weeks remains tilted towards a weaker dollar. This outlook is supported by last week’s US core inflation data for September 2025, which came in slightly cooler than expected at 2.8%, reducing pressure on the Federal Reserve.
Strategies For Traders
For derivative traders, this suggests that buying puts or establishing bearish option spreads on USD/CNH could be a viable strategy. We are targeting a move down to 7.1130, and a decisive break below that level would open the door to the 7.1000 handle. Looking back, we remember the wider swings of 2023 when the pair pushed above 7.30, making the current tight consolidation appear like a prelude to a downward move.
It is critical to manage risk, and our bearish view will be invalidated if the pair breaks above the strong resistance at 7.1400. A move past that point would suggest the dollar has found new strength, forcing a reassessment of any short positions. Options traders could use this level to set the strike price for selling call spreads, collecting premium while maintaining a bearish bias.
This perspective is reinforced by signs of a stabilizing Chinese economy, as China’s Q3 2025 GDP was confirmed earlier this month at a solid 4.9% year-over-year growth. The People’s Bank of China has continued its targeted support, and the latest trade balance figures for September 2025 showed a surprising uptick in exports. This contrasts with the moderating economic momentum in the US, suggesting the yield differential may no longer favor the dollar as strongly as it did in early 2024.
