• USD/CNY strengthened on Thursday as yuan eased as the conflict in the Middle East underpinned safe-haven bids for the greenback.
•The dollar hovered close to its strongest levels so far this year as climbing oil prices threatened to spur inflation and force global central banks to adopt more hawkish policy stances.
•The spot yuan opened at 6.8750 per dollar and last traded at 6.8773 at 0228 GMT, 24 pips lower than the previous late-session close.
• Prior to the market opening, the People's Bank of China set the midpoint at 6.8959 per dollar, 106 pips weaker than a Reuters estimate.
• Immediate resistance is located at 6.6889(SMA 20), any close above will push the pair towards 6.918(38.2%fib)
• Support is seen at 6.862(Daily low) and break below could take the pair towards 6.837(23.6%fib).
Recommendation: Good to sell around 6.890, with stop loss of 6.930 and target price of 6.850
