FxWirePro: USD/CNY extends drop, faces 23.6%fib support

• USD/CNY extended fall on Friday  as   yuan firmed as dollar weakened  following softer-than-expected U.S. jobs data.

• U.S. job growth slowed sharply in June and payroll gains for the prior two months were revised lower, according to data released on Thursday, pointing to a cooling labour market.

• The unemployment rate dropped to 4.2% last month from 4.3% in May as workers left the labour force, pushing the participation rate to the lowest level in more than five years.=.

• China's central bank lifted its official midpoint guidance   for the yuan to its highest in more than two years at 6.8047 on a softer U.S. dollar  

• Traders are also closely watching a mid-year Politburo meeting later this month for potential policy signals from Beijing for the second half of the year.

•  Immediate resistance is located at 6.799(38.2%fib), any close above will push the pair towards 6.818(Higher BB)

• Support is seen at 6.780(SMA 20) and break below could take the pair towards 6.753 (23.6%fib).

Recommendation: Good to sell around 6.790, with stop loss of 6.830 and target price of 6.760