FxWirePro: USD/CNY hits 34-month low as Yuan extends rally

• USD/CNY fell to a fresh 34-month low on Thursday  as the yuan was supported by broad dollar weakness, seasonal export flows, and strong domestic equity market.

• The yuan is now up 0.9% against the dollar this week, set to register its 13th straight week of appreciation.

• Prior to the market opening, the People's Bank of China set the midpoint rate CNY=PBOC at 6.9228 per dollar, its strongest since May 11, 2023.

• The central bank has steadily raised its daily yuan fixing, though at weaker-than-expected levels, signaling a cautious approach to the currency’s appreciation.

• At GMT 05:55,the dollar   was up 0.75% at 7.157  against Chinese Yuan

•  Immediate resistance is located at 6.874 (38.2%fib), any close above will push the pair towards 6.882 (Feb 25th high).

• Support is seen at 8.336(38.2%fib) and break below could take the pair towards 6.7861 (23.8%fib).

Recommendation: Good to sell around 6.835 with stop loss of 6.850  and target price of 6.800