USD/CNH: Chance to test 7.1370 – UOB Group

💡 DMK Insight

The recent uptick in upward momentum suggests traders might see a range of 7.1220 to 7.1340, but don’t expect a breakout just yet. This range indicates a potential short-term trading opportunity, especially for day traders looking to capitalize on fluctuations. However, the lack of a sustained advance signals that market participants should be cautious. If the price fails to break above 7.1340, we could see a retracement back towards lower levels, which could trigger stop-loss orders and further selling pressure. Keep an eye on volume trends; if they don’t support the upward movement, it could be a sign that the rally is losing steam. Also, watch for any economic indicators or news that might impact sentiment in this range. A failure to maintain momentum could lead to a shift in trader psychology, especially if we see a reversal pattern forming on the daily charts. The real story is whether this upward movement can hold or if it’s just a temporary blip before a deeper correction.