The US Dollar may decline slightly against the Chinese Yuan (CNH), with support levels identified at 7.2420 and 7.2350. Holding above 7.2300 has reduced the likelihood of further declines in the USD.

In the last 24 hours, the USD reached a low of 7.2264 before recovering to close at 7.2532, with resistance noted at 7.2570 and 7.2660. The overall outlook suggests that a significant move would require a breach of the strong resistance at 7.2705.

Recent performance indicates the USD’s downward momentum might be easing, but traders should remain cautious.

The way things have shaped up, it looks like the US dollar might not weaken too much against the Chinese yuan—at least not without struggling to break through a few key levels. We’ve marked 7.2420 and 7.2350 as areas where buyers could step in. Prices staying above 7.2300 have made it less likely that we’ll see a deep drop anytime soon.

Over the past day, we saw the dollar dip to 7.2264 before rebounding and closing at 7.2532. Selling pressure has met resistance at 7.2570 and 7.2660. If traders push the price up towards 7.2705, that will be a tough barrier to break. It’s a level that’s held firm before, and if it gives way, that would likely open the door for sharper movements.

There’s been a slowdown in how fast the dollar has been weakening, and that alone suggests that a reversal could be on the cards. That said, those who react too quickly might regret it. While momentum has stalled, there’s no guarantee that strength will return right away. Instead of committing too early, we’d be better off watching price movements in the next few sessions to see if buyers actually have enough control to turn things around.

Now, if the dollar does climb back past 7.2570 with ease, that would hint that more gains are possible. Still, unless it clears 7.2705, we could just be seeing a temporary bounce. If, on the other hand, 7.2300 gets tested again, then downside risks come right back into play. Traders should have a plan for both scenarios, keeping an eye on volumes and intraday momentum for confirmation.