FxWirePro: USD/CNY dips as Yuan firms on strong PBOC fixing

• USD/ CNY dipped  on Wednesday   as China's yuan firmed   on strong PBOC fixing despite US-Sino tensions.

• The People's Bank of China set the midpoint rate   at 7.0995 per dollar, its strongest since November 6 and a breakthrough of the closely watched 7.1 level.

•The yuan’s spot rate is allowed to move 2% in either direction from the daily midpoint set by the PBOC

•China aims to keep the yuan exchange rate generally stable and balanced, a bank official told a publication supported by the central bank on Tuesday.

• Despite lingering trade tensions, the currency firmed after President Trump suggested scaling back some trade with China, such as cooking oil imports, marking the latest move in a week of reciprocal measure.

•  Immediate resistance is located at 7.135(Oct 9th high), any close above will push the pair towards 7.144(38.2%fib).).

• Support is seen at 7.122(SMA 20) and break below could take the pair towards 7.102(23.6%fib).

Recommendation: Good to sell around 7.130 with stop loss of 7.145  and target price of 7.115