FxWirePro: USD/ CNY gains some upside momentum but still bearish

• USD/CNY recovered some ground from  14-month low on Thursday  after the central bank set a weaker-than-expected official midpoint for the sixth consecutive session, signaling caution over rapid appreciation.

•   The People's Bank of China set the yuan's midpoint   at 7.0733 per dollar before the market opened, the strongest since October 14, 2024.

• Overnight, both the onshore and offshore yuan had hit their strongest levels since early October last year.

• The yuan has shrugged off a trade war, slow growth, rock-bottom interest rates and a slump in foreign investment, to head for its sharpest annual gain since the pandemic year of 2020.

 
•  Immediate resistance is located at 7.076(Dec 2nd high), any close above will push the pair towards 7.094 (SMA 20)

• Support is seen at 7.060(23.6%fib) and break below could take the pair towards 7.056(Lower BB).

Recommendation: Good to sell around  7.070 with stop loss of 7.100 and target price of 7.060