FxWirePro: USD/CNY hovers around 3-1/2 years low, Outlook bearish

• USD/CNY hovered around 3-1/2 years low on  Friday   as traders watched for fresh cues of future U.S. monetary policies.

• The U.S. Federal Reserve's future policy path remains in focus. Fed officials shared on Thursday their ongoing concerns about the U.S. inflation landscape, as central bankers gathered in Jackson Hole, Wyoming, for a closely watched economic symposium..

• Some other Fed officials reiterated on Thursday their ongoing concerns about U.S. inflation and signalled they were open to rate hikes..

• Chinese yuan is broadly flat for the week, holding near a 3½-year high against the U.S. dollar as the People’s Bank of China appears comfortable with low currency volatility.

•Analysts expect the PBOC to maintain a cautious approach, limiting the pace of further yuan appreciation in the coming months.

•  Immediate resistance is located at 6.736(SMA 20), any close above will push the pair towards 6.742(38.2%fib)

• Support is seen at 6.718(23.6%fib) and break below could take the pair towards 6.705(Lower BB).

Recommendation: Good to sell around 6.725, with stop loss of 6.760 and target price of 6.700