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

• USD/CNY dipped  on Monday as Yuan was   supported by a firm central bank fixing and the fastest growth in industrial profits in six months.

• Profits at China’s industrial firms grew at their fastest pace in six months in March, according to data from the National Bureau of Statistics, adding to signs of an uneven economic recovery as policymakers brace for the impact of the Iran war.

• Prior to the market opening, the People's Bank of China set the midpoint rate   at 6.8579 per dollar, its strongest since March 2023 .

• The spot yuan is allowed to trade 2% on either side of the fixed midpoint each day.

• The yuan is up 1.0% this month against the dollar, which has given up most of its safe-haven premium, triggered by the Middle East conflict, as markets priced in optimism for a possible peace deal.

•  Immediate resistance is located at 6.842(SMA 20), any close above will push the pair towards 6.852(38.2%fib)

• Support is seen at 6.816 (23.6%fib) and break below could take the pair towards 6.788(Lower BB).

Recommendation: Good to sell around 6.830, with stop loss of 6.850 and target price of 6.815