• USD/CNY dipped to fresh 32-month low on Friday as Yuan firmed as investors bet on continued policy support for currency strength.
•China’s central bank on Thursday cut sector-specific interest rates to give the economy an early boost, signaling room for further cash reserve requirement reductions and broader rate cuts this year.
• Yuan bulls also supported following Zou Lan’s remarks linking the currency’s rally to eased trade US –China tensions and a softer dollar.
• Prior to the market opening, the People's Bank of China set the midpoint rate at 7.0078 per dollar, slightly off the 32-month peak seen in the previous session .
• Immediate resistance is located at 6.994 (SMA 20), any close above will push the pair towards 7.022(38.%fib)
• Support is seen at 6.964(23.6%fib) and break below could take the pair towards 6.954 (Lower BB).
Recommendation: Good to sell around 6.965 with stop loss of 6.980 and target price of 6.950
