• USD/CNY dipped slightly on Thursday as investors awaited the outcome of a key CCP meeting expected to determine China’s economic, political, and social policies for the next five years.
• The Communist Party leadership’s four-day closed-door meeting, which began on Monday, is expected to unveil an outline of its policy direction for the next five years.
• There are lingering hopes that China may introduce stimulus measures to support economic growth and boost consumer confidence, following a series of weak data and amid significant uncertainties from ongoing U.S. trade tensions.
• Meanwhile, U.S. sanctions against Russia and possible new export controls on China revived geopolitical worries..
• Immediate resistance is located at 7.127(38.2%fib), any close above will push the pair towards 7.135(Higher BB).
• Support is seen at 7.112(SMA 20) and break below could take the pair towards 7.105(23.6%fib).
Recommendation: Good to sell around 7.130 with stop loss of 7.145 and target price of 7.115
