FxWirePro: USD/CNY drifts lower, could be on verge of bigger drop

• USD/CNY eased on Wednesday as the yuan strengthened amid dollar weakness and a firmer PBOC midpoint at a 3.5-month high.

• The dollar extended its decline as U.S. 30-year Treasury yields rose to their highest level since 2007, driven by geopolitical concerns and rising government debt worries.

• Prior to the market opening, the People's Bank of China set the midpoint rate   at 6.7854 per dollar, its strongest since February 8, 2023.

• Traders are awaiting the Federal Reserve’s latest meeting minutes for clues on policymakers’ interest-rate outlook.

•The yuan is up 0.7% against the dollar this month and 3.8% firmer this year, supported by a weaker greenback and robust exports.

•  Immediate resistance is located at 6.753(SMA 20), any close above will push the pair towards 6.757(38.2%fib)

• Support is seen at 6.737 (23.6%fib) and break below could take the pair towards 6.731 (Lower BB).

Recommendation: Good to sell around 6.740, with stop loss of 6.780 and target price of 6.710