USD/CNH Set to Dance in a Tight Range—Here’s Why Traders Should Watch Every Move Between 7.1700 and 7.1920!

Ever notice how the US Dollar against the Chinese Yuan sometimes feels like it’s caught in that awkward “will-they-won’t-they” dance? Well, according to the sharp minds at UOB Group—Quek Ser Leang and Peter Chia—the USD is probably going to keep tiptoeing within a tight range between 7.1700 and 7.1920 for the near term. It’s like watching a boxing match where neither fighter quite lands the knockout punch—just steady jabs and cautious footwork. No fireworks, no sudden bursts—just a steady hum that’s got traders scratching their heads, wondering if the big break is just around the corner or if it’s just another day in the slow lane. Makes you ask: when will this tug-of-war between the USD and CNH finally break out of its shell and take us for a wild ride? Hang on tight, because the numbers suggest a tightrope act is in store for the foreseeable future—no dramatic dips or spikes, just a sluggish wobble inside the lines. LEARN MORE.

US Dollar (USD) is likely to trade in a range between 7.1700 and 7.1920 against Chinese Yuan (CNH). In the longer run, USD is expected to trade in a range between 7.1550 and 7.1920, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

USD is expected to trade in a range

24-HOUR VIEW: “While we expected USD to ‘edge higher’ yesterday, we held the view that ‘any advance is likely part of a higher range of 7.1720/7.1920.’ USD then rose to 7.1908, plunged to a low of 7.1694, and then rebounded to close largely unchanged at 7.1805 (-0.03%). The price action provides no fresh clues. Today, we expect range trading, most likely between 7.1700 and 7.1920.”

1-3 WEEKS VIEW: “In our update from Monday (14 Jul, spot at 7.1730), we highlighted that USD ‘is expected to trade in a range between 7.1550 and 7.1920.’ While USD rose to a high of 7.1908 yesterday, there has been no clear increase in momentum. In other words, we continue to hold the same view for now.”