FxWirePro: USD/CNY remains weak, Eyes 6.850 level

• USD/CNY edged lower as yuan firmed after PBOC set  guidance at a near three-year high to stabilise markets amid Middle East tensions and key domestic meetings.

• The central bank has been mostly setting a weaker-than-expected guidance rate since late November, Thursday's fixing, however, was 3 pips firmer than a Reuters' estimate CNY=RTRS of 6.9010.

•The spot yuan is allowed to trade 2% either side of the fixed midpoint each day.

• Prior to market opening, the People's Bank of China (PBOC) set its midpoint rate   at 6.9007 a dollar, 117 pips or 0.07% stronger than its previous setting.

• Meanwhile, China’s parliament opened its annual meeting, with Beijing setting a 2026 economic growth target of 4.5%–5%, slightly lower than last year’s 5% growth.

•  Immediate resistance is located at 6.6978(SMA 20), any close above will push the pair towards 6.924(38.2%fib)

• Support is seen at 6.853(Lower BB) and break below could take the pair towards 6.840(23.6%fib).

Recommendation: Good to buy around 6.900, with stop loss of 6.930 and target price of 6.850