• USD/CNY edged lower on Wednesday as yuan firmed after much-strengthened official guidance rate set by the central bank.
• Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate at 6.7628 per dollar, its strongest since February 3, 2023, and 480 pips weaker than estimate of 6.7148.
• Federal Reserve rate decision is due later in the day, where traders expect the first of what could be several U.S. interest rate hikes.
• China's yuan has gained 4.2% against the dollar so far this year to become one of the best-performing Asian currencies.
• Immediate resistance is located at 6.715(SMA20), any close above will push the pair towards 6.727(38.2%fib)
• Support is seen at 6.704(23.6%fib) and break below could take the pair towards 6.699 (Lower BB).
Recommendation: Good to sell around 6.710, with stop loss of 6.740 and target price of 6.680
