FxWirePro: USD/CNY maintains bearish bias with focus on 7.180 level

• USD/CNY dipped on Friday   as China’s yuan firmed aided by a weaker greenback and positive sentiment after the Sino-U.S. tariff truce.  

• The dollar weakened on Friday as disappointing U.S. economic indicators this week cemented forecasts for further Federal Reserve rate cuts.

• Earlier this week, the U.S. and China agreed to a temporary rollback of the aggressive tariffs they had imposed on each other in April.

• The decision has been welcomed by markets as a hopeful sign of progress toward a more stable trade relatonship between the world’s two largest economies..

• At GMT 05:51, the dollar was down 0.11% to 7.198 against the Chinese Yuan.

•  Immediate resistance is located at 7.212(38.2%fib), any close above will push the pair towards 7.230(50%fib)

• Support is seen at 7.201(May 14th low) and break below could take the pair towards 7.191 (23.6%fib).

Recommendation: Good to sell around 7.200 with stop loss of 7.240 and target price of 7.180