• 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
