FxWirePro: USD/CNY edges higher but bearish outlook persists

• USD/CNY ticked up on Wednesday after China’s central bank cut its daily fixing, prompting a pullback in the yuan following four straight sessions of steady guidance..

•  The yuan’s mild weakness also followed a dovish signal from the central bank, which pledged to maintain an appropriately loose monetary stance this year and signaled cuts to reserve requirement ratios and interest rates to support the economy.

• Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate   at 7.0187 per dollar.

• Meanwhile, the U.S. dollar held to narrow trading ranges as investors looked ahead to multiple U.S. economic indicators that could guide the Fed’s rate trajectory..

•  Immediate resistance is located at 7.000 (Psychological level), any close above will push the pair towards 7.019(SMA 20)

• Support is seen at 6.981(23.6%fib) and break below could take the pair towards 6.970 (Lower  BB).

Recommendation: Good to sell around  6.990 with stop loss of 7.020 and target price of 6.970