FxWirePro: USD/CNY retreats but trend is still bullish

• USD/CNY dipped   on Wednesday  as Chinese Yuan strengthened following firmer guidance by the Chinese central bank.

• The People's Bank of China set the yuan's midpoint rate at 7.1934 per dollar, within a 2% trading band.

• Market participants often assess the gap between official fixings and market projections to gauge the authorities' stance on forex policy.

• The yuan has faced increasing depreciation pressure as a result of President-elect Donald Trump's tariff threats and the rising monetary policy divergence between China and the United States.

• At GMT 06.07,the dollar was down 0.19% at 7.271 against Chinese Yuan .

 •  Immediate resistance is located at 7.300(23.6%fib), any close above will push the pair towards 7.311(Higher BB)

• Support is seen at 7.257(38.2%fib) and break below could take the pair towards 7.224(50%fib).

Recommendation: Good to buy around  7.255 with stop loss of 7.200  and target price of 7.300