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

• USD/CNY slipped lower  on Thursday as the dollar softened on reduced geopolitical tensions and uncertainty over the Fed’s independence.

•The Israel-Iran ceasefire held on Wednesday, as Trump praised the swift end to the conflict and vowed to seek Iran’s commitment to end its nuclear program in upcoming talks.

• The dollar fell after reports showed that President Trump is considering replacing Fed Chair Powell by September or October, raising concerns over Fed independence and policy stability.

• On Wednesday, President Trump criticized Fed Chair Jerome Powell as "terrible" for not aggressively cutting interest rates, even as Powell, in Senate testimony, warned that the President’s tariff policies posed inflation risks and called for a cautious approach to monetary policy.

• At GMT 06:03, the dollar was down 0.14% to 7.165 against the Chinese Yuan.

•  Immediate resistance is located at 7.177(Daily high), any close above will push the pair towards 7.191(38.2%fib)

• Support is seen at 7.160(23.6%fib) and break below could take the pair towards 7.151 (Lower BB).

Recommendation: Good to sell around 7.170, with stop loss of 7.190 and target price of 7.140