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FxWirePro: USD/CNY slides to 10-month low, room for further downside

• USD/CNY hit 10 month low on Tuseday as yuan was aided by dollar softness and the strongest fixing since November.

• The dollar index hit an almost seven-week low Tuesday as markets prepared for U.S. data revisions that could point to softer employment conditions.

• Prior to the market opening, the People's Bank of China set the yuan midpoint rate  at 7.1008 per dollar, its strongest since Nov. 6, 2024.

• Investors now await U.S. producer price data on Wednesday and consumer price data on Thursday for further rate cut cues.

• At GMT 11:28, the dollar was down  0.10% to 7.121 against the Chinese Yuan.

•  Immediate resistance is located at 7.131(Daily high), any close above will push the pair towards 7.154(38.2%fib)

• Support is seen at 7.117(23.6%fib) and break below could take the pair towards 7.101 (Lower BB).

Recommendation: Good to buy  around 7.125, with stop loss of 7.150 and target price of 7.100

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