USD/CNH: Likely to consolidate between 7.1920 and 7.2150 – UOB Group

FXStreet Insights Team FXStreet

Instead of continuing to rally, US Dollar (USD) is more likely to consolidate between 7.1920 and 7.2150 against Chinese Yuan (CNH). In the longer run, sharp rally appears excessive, but there is a chance for USD to rise further to 7.2250, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Chance for USD to rise further to 7.2250

24-HOUR VIEW: "We expected USD to 'trade in a range of 7.1700/7.1835' yesterday. The subsequent price movements did not turn out as we expected. Rather than trading in a range, USD rallied and closed higher by 0.44% (7.2129), its largest one-day gain in about four months. The sharp rally appears excessive, and instead of continuing to rally, USD is more likely to consolidate today, probably between 7.1920 and 7.2140."

1-3 WEEKS VIEW: "Two days ago (29 Jul, spot at 7.1820), we indicated that 'upward momentum is building, but for a continued advance, USD must first close above 7.1910.' Yesterday, in a sudden move, USD surged to a high of 7.2140 before closing on a strong note at 7.2129 (0.44%). The sharp rally appears to be excessive, but as long as USD holds above 7.1750 (‘strong support’ level previously at 7.1660), there is a chance for it to rise further to 7.2250."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD hovers around 1.3300 after flirting with monthly lows

GBP/USD trades mildly on the defensive on Wednesday, barely holding above a multi-week trough around 1.3280. Indeed, Cable struggles to gain traction as the Greenback remains resilient ahead of the Federal Reserve announcement. Moving forward, the British Pound should remain under the microscope in light of the BoE meeting on Thursday.

EUR/USD stays offered below 1.1400 pre-Fed

EUR/USD trades in a narrow range below 1.1400 on Wednesday. The pair’s slight decline comes as the US Dollar benefits from risk aversion amid the deepening crisis in the Middle East. In the meantime, investors remain exclusively focused on the imminent FOMC event and the press conference by Chair Warsh.

Gold: The $4,000 mark holds the downside ahead of the Fed

Gold remains on the back foot on Wednesday, navigating the area just above the psychological $4,000 mark per troy ounce amid the US Dollar’s marginal advance. In the meantime, escalating tensions in the US-Iran conflict weigh on the precious metal, while investors await the FOMC event later in the day.

Bitcoin slips below support, Ethereum and XRP flash bearish signals

Bitcoin, Ethereum and Ripple remain under pressure on Wednesday after a mild correction earlier this week. BTC slips below a key support zone, and ETH is testing a key resistance zone. Meanwhile, XRP is drifting toward the psychologically important $1.00 support level.

Bitcoin muted as markets fret over Fed, crypto bill

There are two main drivers for crypto this week, keeping Bitcoin trapped within its $58,000-$65,000 summer consolidation range. The cautious tone is being set by the Fed's policy decision scheduled later on Wednesday, a key catalyst for risk assets.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.