FxWirePro: USD/ CNY dips as China's yuan strengthens on stimulus hopes

• USD/CNY dipped on Monday  as Yuan strengthened after China's central bank took additional measures to lure foreign investors to its bond market.

•   On Friday, China expanded foreign access to its bond repurchase market as part of efforts to attract global investors to yuan-denominated assets.

• In addition, the People’s Bank of China (PBOC) set up an operations center in Shanghai to promote global use of the digital yuan, while officials also announced plans to expand offshore yuan business in Hong Kong.

•The central bank also vowed to strengthen policy support for growth, boosting expectations of additional stimulus.

• At GMT 11:08,the dollar was down 0.18% at 7.119 against Chinese Yuan .

 
•  Immediate resistance is located at 7.123(SMA20), any close above will push the pair towards 7.142(38.2%fib)

• Support is seen at 7.101(23.6%fib) and break below could take the pair towards 7.096(Lower B).

Recommendation: Good to sell  around  7.120 with stop loss of 7.140 and target price of 7.100