FxWirePro: USD/CNY gains some ground but bearish outlook persists

• USD/CNY strengthened on Friday as escalating conflict in the Middle East boosted safe-haven demand for the U.S. dollar.

• The dollar rose to a more than three-month high on Friday and was set for its second weekly gain since the beginning of the ​war.

• Iran escalated attacks in the Middle East as Supreme Leader Mojtaba Khamenei vowed to keep the Strait of Hormuz closed, raising fears of prolonged conflict and higher oil prices

•Markets are also watching China’s February credit and activity data, including retail sales, for signals on the health of the domestic economy.

• Prior to Friday's market open, the People's Bank of China (PBOC) set its official midpoint   at 6.9007 per dollar, 48 pips or 0.07% weaker than the previous setting.

•  Immediate resistance is located at 6.6889(SMA 20), any close above will push the pair towards 6.921(38.2%fib)

• Support is seen at 6.848(Lower BB) and break below could take the pair towards 6.842(23.6%fib).

Recommendation: Good to sell  around 6.890, with stop loss of 6.930 and target price of 6.850