Insights 
VT 
The US Dollar may test 7.1650 against the Chinese Yuan, with major support at 7.1500 unlikely to be reached. Bias for the dollar is on the downside, with a slight possibility of downward movement in a longer-term perspective.
In recent trading, the US Dollar fell to 7.1720, declining 0.46%. The decline may stabilise soon with resistance levels at 7.1870 and 7.1980, and a major support level that seems unlikely to come into play.
1-3 Week Forecast
Over the next 1-3 weeks, the US Dollar may range between 7.1850 and 7.2450. For now, as long as the level of 7.2070 is not breached, the tendency remains towards a downside, possibly towards 7.1500.
The recent movement in the Dollar-Yuan pair shows a modest downturn, with a weekly close around 7.1720 following a dip of nearly half a percent. A few resistance levels—specifically near 7.1870 and 7.1980—could limit any potential rebounds. The selling pressure hasn’t been aggressive, but weakness remains embedded, especially if 7.2070 continues to hold. Recent sessions suggest that sellers returned on strength rather than pressuring on major breaks lower, which aligns with a fading bullish momentum.
Looking ahead over the course of the next few weeks, we expect sideways moves to persist between the boundaries of roughly 7.1850 and 7.2450. The upper bound does not suggest a breakout is imminent unless momentum sees a pickup. Until 7.2070 is broken cleanly to the upside, any shifts higher are likely to face reluctance. That level effectively defines the threshold between temporary pullbacks and a more sustained bounce.
Longer-Term Outlook
Longer-term traders can interpret the downside lean as an early signal of reduced tolerance for Dollar strength. While 7.1500 has been flagged as major support, it is still some stretch away from where price is currently stabilising. For entries, that level seems premature unless volatility increases markedly.
That said, resistance levels remain better-defined than support, which narrows the odds of a clear upward extension. Our view holds that technical signals do not point to strong upward pressure at this stage. We would view any bounces within the current range as opportunities to reassess positions, rather than calls for reversal strategies.
Consider keeping positions light with clearly defined levels—preferably outside the triangle formed around 7.1850 to 7.2070. The probability for major deviation is low without fresh indicators, so responsiveness to data or policy commentary could carry more weight over the typical technical set-ups.
In short, there has been a softening in momentum, and until price can convincingly push beyond that 7.2070 level, the general lean remains on the downside. We remain positioned accordingly.
