FxWirePro: USD/CNY rebounds, critical resistance lies ahead

• USD/ CNY rebounded   on Wednesday   as U.S. currency's firmed on reduced bets for imminent Federal Reserve rate cuts.

• Data on Tuesday showed U.S. consumer prices rose 0.3% in June, in line with forecasts, but the largest gain since January

•  Economists said tariffs imposed by the Trump administration were fueling higher prices in categories like coffee and furnishings.

• The Federal Reserve has paused rate moves as it watches for inflationary effects from tariffs, which Powell had projected would surface during the summer.

• Investors are now turning their attention to Wednesday’s producer price data for clues on whether inflation is rising at the factory level.

• At GMT 05:58,the dollar   was up 0.10% at 7.179  against Chinese Yuan.

•  Immediate resistance is located at 7.181 (38.2%fib), any close above will push the pair towards 7.187(Higher BB).

• Support is seen at 7.156(23.6%fib) and break below could take the pair towards 7.153 (Lower BB).

Recommendation: Good to sell around 7.175  with stop loss of 7.150 and target price of 7.200