• USD/CNY touched a two-week low on Thursday, pressured by a softer dollar following the Fed’s dovish stance.
• Traders view a Fed rate cut on September 17 as nearly certain, with data showing about 7% odds of a 50-basis-point cut.
• In recent sessions, the Chinese yuan has moved in tandem with the U.S. dollar, driven by growing expectations that the Federal Reserve may shift its monetary policy stance.
Meanwhile, markets are awaiting key economic releases, including data on home prices, industrial output, retail sales, and unemployment.
• At GMT 09:56, the dollar was down 0.03% to 7.171 against the Chinese Yuan.
• Immediate resistance is located at 7.203(38.2%fib), any close above will push the pair towards 7.213(Aug 1st high)
• Support is seen at 7.179(SMA 20) and break below could take the pair towards 7.155 (Lower BB).
Recommendation: Good to sell around 7.180, with stop loss of 7.200 and target price of 7.160
