FxWirePro:USD/CNY downside pressure builds, key support level in focus

• USD/CNY edged lower on Monday   as China's yuan firmed after PBOC move to raise the daily reference rate to its strongest level in almost eight months.

• Prior to the market opening, the People's Bank of China set the midpoint rate   at 7.1586 per dollar, its strongest since November 8, 2024.

•On the data front, China's manufacturing sector contracted for the third consecutive month in June, reflecting continued weakness in industrial activity..

• China’s o  PMI rose to 49.7 in June from 49.5 in May, remaining below the 50 threshold that separates growth from contraction.

• At GMT 06:17, the dollar was down 0.12% to 7.163 against the Chinese Yuan.

•  Immediate resistance is located at 7.176(June 26th high), any close above will push the pair towards 7.190(38.2%fib)

• Support is seen at 7.158 (23.6%fib) and break below could take the pair towards 7.152 (Lower BB).

Recommendation: Good to sell around 7.165 with stop loss of 7.190 and target price of 7.150