FxWirePro: USD/CNY hits 15-month low , scope for further downside

• USD/CNY  slipped to hit  15-month low   on Wednesday as China's yuan was boosted by strongest official midpoint fixing and seasonal year-end demand for the currency.

•Before markets opened, the PBOC fixed the yuan midpoint at 7.0471, the firmest since late September 2024.

•Exporters usually sell more foreign currency for yuan at year-end, a pattern that may continue into January ahead of the Lunar New Year.

•  Despite the firm fix, the PBOC has set it weaker than  estimates since late November, signalling an effort to curb yuan gains.

• The currency is up about 3.9% this year and is on track for its biggest annual gain since 2020, aided by a weaker dollar, easing U.S. trade tensions and strong Chinese exports.

•  Immediate resistance is located at 7.029 (Daily high), any close above will push the pair towards 7.053(38.2%fib)

• Support is seen at 7.012(23.6%fib) and break below could take the pair towards 7.000 (Psychological level).

Recommendation: Good to sell around  7.025 with stop loss of 7.060 and target price of 7.000