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

• USD/CNY  dipped on Monday as weaker dollar offset weaker-than-expected fixing by PBOC.

•The dollar index  , which measures the greenback against six major currencies, was 0.090% lower at 98.61.

•  Prior to the market opening, the People's Bank of China set the midpoint rate   at 7.0572 per dollar .

• The PBOC has been consistently setting the midpoint rate weaker than expected since late November.

• China left benchmark loan prime rates (LPRs) unchanged for the seventh consecutive month in December on Monday, matching market expectations.

•  Immediate resistance is located at 7.055 (38.2%fib), any close above will push the pair towards 7.080(SMA20)

• Support is seen at 7.031(23.6%fib) and break below could take the pair towards 7.026 (Lower  BB).

Recommendation: Good to sell around  7.040 with stop loss of 7.060 and target price of 7.010