FxWirePro: USD/CNY hovers near two-week high amid risk-off mood

• USD/CNY  hovered near two-week high on Wednesday  as China's yuan was pressured by a broad global risk-off mood and stronger greenback  .

•   The U.S. dollar index  , which measures the currency against six major currencies, was steady at 100.13, hovering near its strongest level since August 1.

•The dollar rebound was supported by a mix of short-term drivers including Federal Reserve Chair Jerome Powell's resistance to a December rate cut and safe-haven demand.

•On the data front, China’s services sector expanded in October but at the slowest pace in three months, as weaker overseas demand offset gains from stronger domestic spending, a private survey showed on Wednesday.

•China will release trade data on Friday and inflation figures on Sunday, followed by credit lending and activity indicators next week.

•  Immediate resistance is located at 7.137 (38.2%fib), any close above will push the pair towards 7.147(Higher BB)

• Support is seen at 7.120(SMA 20) and break below could take the pair towards 7.095(23.6%fib).

Recommendation: Good to buy around  7.125 with stop loss of 7.110 and target price of 7.135