• USD/ CNY strengthened on Monday as the greenback firmed following a flare-up in Gulf tensions.
• U.S. and Iranian forces exchanged heavy fire over the weekend, and Tehran said it had again closed the Strait of Hormuz.
• Prior to the market opening, the People's Bank of China set the midpoint rate at 6.7972 per dollar, its strongest since February 10, 2023.
• The USD/CNY was last trading 0.10% up at 6.782 per dollar, pulling back from a two-week low of 6.77 reached on Friday
• Immediate resistance is located at 6.782 (Daily high), any close above will push the pair towards 6.789(38.2%fib).
• Support is seen at 6.756(38.2%fib) and break below could take the pair towards 6.749(Lower BB).
Recommendation: Good to sell around 6.785 with stop loss of 6.800 and target price of 6.750
