FxWirePro: USD/ CNY hits 13-month low,scope for further downside

• USD/CNY hit a 13-month low Wednesday as the yuan gained on dovish Fed remarks, a China-U.S. leadership call, and optimism over easing Russia-Ukraine tensions.

•  The Chinese yuan has shrugged off trade tensions, slow growth, ultra-low rates, and weak foreign investment, heading for its biggest annual gain since 2020.

• Prior to the market's opening, the People's Bank of China (PBOC) set the midpoint rate   at 7.0796 per dollar, its strongest since October 14, 2024

•  Looking ahead, investors will monitor the upcoming Politburo meeting and the Central Economic Work Conference (CEWC) in December for possible hints on the policy agenda for next year.

• At GMT 06:35,the dollar   was down 0.03% at 7.081  against Chinese Yuan

•  Immediate resistance is located at 7.101 (Daily high), any close above will push the pair towards 7.109(SMA 20).

• Support is seen at 7.080(23.6%fib) and break below could take the pair towards 7.072 (Lower BB).

Recommendation: Good to buy  around 7.085 with stop loss of 7.100  and target price of 7.070