• USD/CNY dipped to fresh 32-month low on Thursday as yuan was underpinned by a stronger midpoint guidance fix.
•The central bank has incrementally increased its daily guidance, though below market forecasts since November, a tactic believed to support currency stability..
• Prior to the market's opening, the PBOC set the midpoint rate CNY=PBOC at 7.0064 per dollar, the strongest since May 18, 2023.
• The yuan has been on the rise lately, supported by a weaker dollar and exporters buying the local currency .
• Immediate resistance is located at 6.979 (Jan 19th high), any close above will push the pair towards 6.996(38.%fib)
• Support is seen at 6.964(23.6%fib) and break below could take the pair towards 6.945 (Lower BB).
Recommendation: Good to sell around 6.970 with stop loss of 6.980 and target price of 6.950
