FxWirePro: USD/CNY hits one –month high, scope for further upside

• USD/CNY  hits one-month high  on Wednesday as China's yuan was  pressured by a stronger greenback as investors positioned for potential Federal Reserve rate hikes..

• The U.S. dollar reached a fresh 13-month high against major currencies on risk-averse sentiment amid a tech selloff and expectations of U.S. rate hikes later this year.

• The dollar has been supported as markets adjusted ​expectations for a more hawkish stance from the Fed under new Chairman Kevin Warsh.

•Before the market opened, the People's Bank of China set the yuan's midpoint rate CNY=PBOC at 6.8195 per dollar, its weakest since June 8

• The yuan is down 0.5% against the dollar this month, but is 2.9% firmer this year..

•  Immediate resistance is located at 6.819(May 20th high), any close above will push the pair towards 6.831(38.2%fib)

• Support is seen at 6.796(38.2%fib) and break below could take the pair towards 6.785(Daily low).

Recommendation: Good to buy  around 6.780, with stop loss of 6.740and target price of 6.800