Ella 
24-hour view: Yesterday we expected USD/CNH to move slightly lower. However, we think “any decline beyond 7.1500 is unlikely.” We did not expect a sharp drop to push prices down to a low of 7.1259. Although severely oversold, its decline has yet to stabilize. The exchange rate may stabilize after testing 7.1250 today. 7.1000 is not expected to threaten. On the upside, a break above 7.1800 (slight resistance at 7.1650) would suggest that the downtrend has stabilized.
Next 1-3 weeks: Since a week ago (July 19 market price 7.1950), we believe that USD/CNH may trade in the range of 7.1500-7.2500. After a week of range-bound trading, the pair broke through 7.1500 yesterday and fell to 7.1259 yesterday. The downward momentum is enhanced, and the exchange rate has room to fall further. However, it is worth pointing out that there are several strong support levels at 7.1240 and 7.1000. As long as it remains below 7.2000, downside risks remain.
