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

• USD/CNY slipped  lower on Wednesday as the U.S. dollar softened amid investor focus on the progress of President Trump's tax bill.

• U.S. President Donald Trump faced a significant political setback as he failed to rally enough support from key Republican holdouts to pass his sweeping tax reform bill..

• Despite intense lobbying efforts and public appeals, several GOP lawmakers expressed concerns about the bill's potential to balloon the federal deficit and disproportionately benefit the wealthy.

•  Moody's downgrade of the U.S. sovereign debt rating on Friday had limited immediate market impact but reinforced concerns over the declining appeal of U.S. assets as safe havens.

•Traders remained cautious as U.S. officials were seen possibly advocating for a weaker dollar during the ongoing G7 finance ministers' meeting in Canada.

• At GMT 10:15, the dollar was down 0.19% to 7.205 against the Chinese Yuan.

•  Immediate resistance is located at 7.218(Daily high), any close above will push the pair towards 7.225(38.2%fib)

• Support is seen at 7.198(23.6%fib) and break below could take the pair towards 7.175 (Lower BB).

Recommendation: Good to sell around 7.210 with stop loss of 7.250 and target price of 7.170