• USD/CNY strengthened on Thursday as yuan weakened after China sets its official midpoint rate at the weakest in two months.
• Prior to the market opening, the People's Bank of China set the midpoint rate , around which the yuan is allowed to trade in a 2% band.
• The dollar rebounded from a five-month low after the Fed held rates steady on Wednesday and signaled no urgency for cuts despite tariff uncertainties.
• At GMT 10:31,the dollar was up 0.17% at 7.241 against Chinese Yuan .
• Immediate resistance is located at 7.245(38.2%fib), any close above will push the pair towards 7.253(23.6%fib)
• Support is seen at 7.232(50%fib) and break below could take the pair towards 7.224(61.8%fib).
Recommendation: Good to buy around 7.235 with stop loss of 7.220 and target price of 7.270
