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FxWirePro: USD/CNY hovers near three-year low, scope for further downside

• USD/CNY   hovered around a three-year low as signs of renewed hostilities in the Middle East kept investors cautious.

•  yuan  strengthened past the psychologically important 6.8-per-dollar level on Thursday on hopes of a U.S.-Iran deal to end the war,.

• The PBOC has persistently set softer-than-expected fixings since last November to maintain currency stability.

• Looking ahead,  market attention will shift to U.S. President Donald Trump's visit to China next week and a string of domestic data including trade on Saturday, inflation on Monday and credit lending data later next week.

•  Immediate resistance is located at 7.271(38.2%fib), any close above will push the pair towards 7.284(23.6%fib)

• Support is seen at 7.261(50%fib) and break below could take the pair towards 7.250(61.8%fib).

Recommendation: Good to sell around 6.805, with stop loss of 6.815 and target price of 6.790

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