Ella 
Yesterday, we expected USD/CNH to trade in the range of 7.2850-7.3150. USD/CNH then traded between 7.2895/7.3160. In early trading in Asia today, the US dollar/offshore RMB trend is strong and may rise further. Still, USD/CNH is unlikely to hit the major resistance at 7.3400. To maintain upward momentum, USD/CNH must not fall below 7.2950 (minor support is at 7.3050).
Outlook for the next 1-3 weeks: We noted yesterday (September 20, when prices were at 7.3030) that “the downward momentum has slowed”. We said, “If USD/CNH breaks above 7.3150, it would suggest that 7.2390 will not occur this time. Price action suggests that the downward pressure that began early last week has weakened. For now, USD/CNH is likely to trade between 7.2800- Trading within the 7.3400 range.
