FxWirePro: USD/CNY edges higher following China’s rate cut

• USD/CNY edged higher on Tuesday     as China’s yuan weakened  after   China cut key benchmark lending rates.  

• China cut benchmark lending rates for the first time since October, with major banks also lowering deposit rates to ease monetary policy amid Sino-U.S. trade tensions.

• The People's Bank of China cut the one-year loan prime rate (LPR) by 10 bps to 3.0%, and the five-year LPR by 10 bps to 3.5%.h.

•. The rate cut reflect Beijing’s proactive approach to managing economic risks linked to trade tensions, aiming to maintain steady growth.

• At GMT 06:56, the dollar was up 0.07% to 7.218 against the Chinese Yuan.

•  Immediate resistance is located at 7.226(38.2%fib), any close above will push the pair towards 7.249(50%fib)

• Support is seen at 7.198(23.6%fib) and break below could take the pair towards 7.178 (Lower BB).

Recommendation: Good to sell around 7.220 with stop loss of 7.250 and target price of 7.180