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

• USD/CNY  dipped  on Friday    as Yuan firmed  as traders keep their eyes on U.S.-Iran talks and war-triggered inflation worries that pushed up U.S. yields.

• U.S.-Iran talks remained in focus as Washington and Tehran maintained opposing positions on Iran’s uranium stockpile and control of the Strait of Hormuz, although U.S. Secretary of State Marco Rubio said there were “some good signs” in the negotiations.

• Higher-than-expected U.S. inflation reports for April have already pushed up U.S. yields as investors expect the Federal Reserve will hike interest rates this year instead of cutting them.

• Prior to the market open, China's central bank set the guidance rate at 6.8373 per dollar, a tad weaker than the previous session's level.

•  Immediate resistance is located at 6.811(SMA 20), any close above will push the pair towards 6.819(38.2%fib)

• Support is seen at 6.782(23.6%fib) and break below could take the pair towards 6.771(Lower BB).

Recommendation: Good to sell around 6.800, with stop loss of 6.850 and target price of 6.780