FxWirePro: USD/CNY trades in narrow range ahead of Powell speech

• USD/CNY traded in a narrow range on Friday as investors awaited Fed Chair Jerome Powell’s Jackson Hole speech for guidance on the direction of monetary policy.

•Investors are awaiting Powell’s address for insight into the chances of a September rate cut, following lukewarm comments from other Fed policymakers.

• At Jackson Hole, Powell is expected to outline the Fed’s policy outlook for the year, discuss adjustments to the average inflation targeting framework, and emphasize the Fed’s independence.

• Fed futures now price in only a 70% chance of a rate cut next month, down from near certainty recently.

• At GMT 11:11, the dollar was down  0.02% to 7.178 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 7.170, with stop loss of 7.150 and target price of 7.200