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• USD/ CNY strengthened on Monday as China's yuan weakened as traders sought clues on potential U.S. rate hikes, and awaited fresh data to assess China's economic health.
•The market's loss of direction portends more volatility ahead, but the yuan's ride will likely be smoother due to Chinese central bank guidance.
• Traders will closely watch minutes from last month's Federal Reserve meeting for clues on whether the Fed will raise U.S. interest rates..
• A survey showed on Friday that China's services activity expanded at a slightly slower pace in June as growth in new business eased.
• Immediate resistance is located at 6.792 (Daily high), any close above will push the pair towards 6.800 (Psychological level).
• Support is seen at 6.786(38.2%fib) and break below could take the pair towards 6.778(SMA 20).
Recommendation: Good to sell around 6.800 with stop loss of 6.830and target price of 6.780
