FxWirePro: USD/CNY edges higher, outlook bearish

• USD/CNY gained modestly on  Tuesday  as   Yuan weakened despite the central bank setting its midpoint guidance at a one-week low.

• Before the market opened, the People's Bank of China set the midpoint rate   at 6.7917 per dollar, its weakest since July 28 and 322 pips weaker than   estimate.

• The spot yuan is allowed to trade 2% on either side of the midpoint each day. The weak guidance came   after sliding in the wake of yen-buying intervention and easing oil prices.

• China's manufacturing activity grew at its weakest pace in four months in July, with slower gains in output and new orders, although export orders returned to expansion after a previous decline, according to a private-sector survey released Monday.

•  Immediate resistance is located at 6.759(Daily high), any close above will push the pair towards 6.772(38.2%fib)

• Support is seen at 6.746(23.6%fib) and break below could take the pair towards 6.739 (Lower BB).

Recommendation: Good to sell around 6.760, with stop loss of 6.800 and target price of 6.740