Further US Dollar (USD) weakness vs Chinese Yuan (CNH) is not ruled out, but any decline is likely part of a lower range of 7.2400/7.2800. In the longer run, USD could remain under pressure but note the pair of strong supports at 7.2400 and 7.2260, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
USD can remain under pressure
24-HOUR VIEW: "The sharp and swift selloff that sent USD plummeting by 0.69% (7.2535) was surprising. Note that the 0.69% drop is the second biggest one-day drop this year. The decline appears excessive, but with no signs of stabilisation just yet, further weakness is not ruled out. However, given the deeply oversold conditions, any decline is likely part of a lower range of 7.2400/7.2800."
1-3 WEEKS VIEW: Our latest narrative was from last Friday (28 Feb, spot at 7.2950), wherein the strong advance from last Thursday 'indicates there is potential for USD to rise to 7.3250.' In a sudden move yesterday, USD plunged to a low of 7.2485. The breach of our ‘strong support’ level at 7.2680 has invalidated our view. Although the sharp drop yesterday indicates USD could remain under pressure, note that there is a pair of strong supports at 7.2400 and 7.2260. To maintain the downward pressure, USD must not break above 7.2980."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD consolidates near two-month top; remains below 0.6400 ahead of Aussie jobs data
AUD/USD oscillates below the 0.6400 mark as bulls pause for a breather after the recent sharp rally to a nearly two-month high touched the previous day and ahead of Australian jobs data. The RBA's cautious signal on further interest rate cuts, hopes for more stimulus from China, and Trump's temporary tariff reprieve acts as a tailwind for the Aussie.
USD/JPY stages a recovery from multi-month low; upside seems limited
USD/JPY rebounds from the 141.60 area, or a seven-month trough touched during the Asian session on Thursday amid a modest USD bounce, though it lacks follow-through as trade-war woes continue to underpin the safe-haven JPY.
Gold price extends the record run amid US tariffs-inspired rush to safety
Gold price builds on the previous day's breakout momentum above the $3,300 mark and touches a fresh all-time peak during the Asian session on Thursday. Tariff uncertainty, the escalating US-China trade war, global recession fears, and expectations of more aggressive Fed easing continue to support XAU/USD.
Ethereum face value-accrual risks due to data availability roadmap
Ethereum declined 1%, trading just below $1,600 in the early Asian session on Thursday, as Binance Research's latest report suggests that the data availability roadmap has been hampering its value accrual.
Future-proofing portfolios: A playbook for tariff and recession risks
It does seem like we will be talking tariffs for a while. And if tariffs stay — in some shape or form — even after negotiations, we’ll likely be talking about recession too. Higher input costs, persistent inflation, and tighter monetary policy are already weighing on global growth.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.