FxWirePro: USD/ CNY fresh wave of weakness targets 7.000 level

• USD/CNY fell to a 16-month low as investors anticipated that Beijing would introduce new economic stimulus after a significant U.S. rate cut.

• The yuan also strengthened by signs of rising corporate demand, as more exporters are settling their foreign exchange receipts, a trend that could gain momentum.

• Since late July, the Chinese currency has risen about 3%, recovering its first-half losses, as the dollar declined due to expectations of U.S. rate reductions.

• At GMT 17:47,the dollar   was down 0.24% at 7.050 against Chinese Yuan

•  Immediate resistance is located at 7.068 (Daily high high), any close above will push the pair towards 7.086 (50%fib).

• Support is seen at 7.044(23.6%fib) and break below could take the pair towards 7.044 (Psychological level).

Recommendation: Good to sell   around 7.050 with stop loss of 7.110  and target price of 7.000