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FxWirePro: USD/ CNY extends gains, potential for bullish continuation

• USD/ CNY strengthened  on Thursday as dollar strengthened after data showed that U.S. retail sales increased slightly more than expected in September.

• U.S. retail sales rose 0.4% last month, following an unrevised 0.1% increase in August. Economists surveyed  expected retail sales to grow by 0.3%

• Traders are now pricing in 44 basis points of additional cuts by year-end, or a less than 100% chance of a 25 basis point cut at both of the Fed’s next two meetings.

•Technical signals are bullish  as RSI is  up at 66, moving averages are trending north

•  Immediate resistance is located at 7.129(23.6%fib), any close above will push the pair towards 7.140 (Higher BB).

• Support is seen at 7.107(38.2%fib) and break below could take the pair towards 7.089 (50%fib).

Recommendation: Good to buy  around 7.115 with stop loss of 7.070  and target price of 7.140

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