FxWirePro: USD/CNY slide lower shifts pressure to the downside

• USD/CNY edged lower on Monday as investors looked ahead to the U.S. Federal Reserve’s Jackson Hole symposium later this week for policy signals.

• Market participants are watching Powell’s speech for fresh signals on the Fed’s policy direction ahead of September.

• A Fed rate cut may weigh on the dollar while boosting other major currencies, including the yuan.

• Markets now see an 84% chance of a quarter-point Fed rate cut next month, down from 98% last week, after stronger U.S. wholesale prices and retail sales reduced expectations of a larger 50-basis-point move.

• At GMT 06:02, the dollar was down  0.03% to 7.178 against the Chinese Yuan.

•  Immediate resistance is located at 7.190(38.2%fib), any close above will push the pair towards 7.204(Higher BB)

• Support is seen at 7.167(Daily low) and break below could take the pair towards 7.156 (Lower BB).

Recommendation: Good to sell around 7.180, with stop loss of 7.200 and target price of 7.160