Ella 
On Tuesday, it was difficult for USD/CNH to gain clear momentum, and the entire Asian market fluctuated within a narrow range around the 7.2900 mark.
The central parity rate set by the People’s Bank of China continued to be stronger than expected, coupled with a slight weakening of the US dollar, becoming the headwind of USD/CNH. However, USD/CNH downside is still moderated by growing concerns over deteriorating economic conditions in China. Beyond that, expectations that the Federal Reserve (Fed) will keep interest rates higher for a longer period of time also favored dollar bulls and signaled the least upside resistance for USD/CNH.
From a technical perspective, USD/CNH has shown some resilience below the 7.2700 round-number mark since early last week. As such, a break below that level could spark some technical selling and pave the way for an extension of the recent pullback from the highest level since April 2022, around 7.3500 hit earlier this month. At that point, USD/CNH may turn weaker, accelerating its downside, testing the next relevant support around 7.2300, and then down to the 7.2200-7.2180 area, and then 7.2100.
On the upside, bulls may now wait for sustained strength above the 7.3000-7.3050 area before placing bets, with USD/CNH likely to challenge the 7.3355 supply zone above this area. Follow-through buying after breaking the yearly high in USD/CNH would be a new trigger for bullish traders and test the 2022 swing high around 7.3750 and then intermediate resistance around 7.3600.
