FxWirePro: USD/CNY downside pressure builds, key support level In focus

• USD/CNY  slipped lower on Wednesday as yuan breached the psychologically  7-per-dollar level    after data showed China's factory activity edges back to growth in December.

•  The RatingDog China General Manufacturing PMI, compiled by S&P Global, rose to 50.1 in December from 49.9 in November, moving back above the 50 threshold that separates expansion from contraction.

• The world’s second-largest economy remains on track to meet its full-year 2025 growth target of around 5%, despite headwinds from a U.S. trade war, a prolonged property downturn, and persistently weak domestic demand.

• The yuan’s appreciation has picked up into year-end, supported by a broadly weaker U.S. dollar and increased seasonal FX conversions by exporters.

•  Immediate resistance is located at 7.000 (Psychological level), any close above will push the pair towards 7.023(38.2%fib)

• Support is seen at 6.985(23.6%fib) and break below could take the pair towards6.973 (Lower  BB).

Recommendation: Good to sell around  6.990 with stop loss of 7.020 and target price of 6.975