• USD/CNY edged lower on Tuesday as yuan firmed despite PBOC caution over currency rally
• Market participants are closely watching the People's Bank of China's (PBOC) daily midpoint fixing for any subtle signals about the official stance on the foreign exchange market.
• The central bank has been generally setting the midpoint firmer than market expectations since last November. However, the official fix came in weaker than market projections for the fourth straight session on Tuesday.
• Prior to market opening, the PBOC set the midpoint rate at 7.0794 per dollar, its weakest since November 26 .
• Immediate resistance is located at 7.130 (38.2%fib), any close above will push the pair towards 7.147(Higher BB)
• Support is seen at 7.069(23.6%fib) and break below could take the pair towards 7.058 (Lower BB).
Recommendation: Good to sell around 7.070 with stop loss of 7.100 and target price of 7.050
