FxWirePro: USD/CNY downtrend loses steam, remains on bearish path

• USD/CNY edged higher on Friday as the yuan slipped slightly but  poised for small weekly gain.

•  The yuan has been one of the best-performing emerging market currencies since the outbreak of the Iran war in late February by gaining about 0.6% on the greenback.

• China’s economy grew 5.0% year-on-year in the first quarter, reaching the upper end of its 4.5%–5.0% annual target range and underscoring its resilience compared to much of Asia.

• Prior to market opening on Friday, the PBOC set the midpoint at 6.8622 per dollar, 416 pips softer.

• The central bank has mostly set the official midpoint rate weaker than market expectations since November, a move that market participants interpreted as an attempt to rein in excess strength and keep the currency stable.

•  Immediate resistance is located at 6.840(April 14th high), any close above will push the pair towards 6.864(SMA 20)

• Support is seen at 6.810 (23.6%fib) and break below could take the pair towards 6.7879(Lower BB).

Recommendation: Good to sell  around 6.825 with stop loss of 6.850 and target price of 6.800