FxWirePro: USD/CNY retreats slightly but trend is still bullish

• USD/ CNY edged   lower on Friday as Yuan firmed as the PBOC continued to guide the currency with a firm fix.

• The People's Bank of China fixed the daily midpoint for the yuan at 7.1498 per dollar ahead of Friday’s market open.  

•  The fixing was marginally softer than Thursday’s, which had represented the yuan’s firmest official midpoint since November 2024.

•The spot yuan is permitted to trade within a 2% band around the daily midpoint. Based on Friday’s official fixing, it can weaken to as low as 7.2928.

• Analysts expect the yuan to stay range-bound between 7.1 and 7.2 per U.S. dollar next year, constrained by external trade pressures and muted economic growth in China.

• At GMT 06:36,the dollar   was down 0.06% at 7.1786  against Chinese Yuan.

•  Immediate resistance is located at 7.1895 (38.2%fib), any close above will push the pair towards 7.2143(50%fib).

• Support is seen at 7.1748(SMA 9) and break below could take the pair towards 7.1569 (23.6%fib).

Recommendation: Good to buy around 7.1755  with stop loss of 7.1500 and target price of 7.2000