FxWirePro: USD/CNY hovers near one week low, more downside expected

• USD/CNY hovered near  one week low on Thursday  as worries of a worsening fiscal outlook in the United States kept investors cautious.

• Focus is on President Donald Trump’s tax bill, set for a vote in the House of Representatives   as investors grow concerned it could add around $3.8 trillion to the already $36 trillion U.S. debt load.

•  Moody's downgrade of U.S. sovereign debt on Friday had a limited immediate market impact but underscored growing concerns about the diminishing safe-haven appeal of U.S. assets.

•The Yuan  is up 1.0% against the dollar this month and 1.3% this year, boosted by a U.S.-China trade truce and a weaker greenback amid worries over the U.S. economy.

• At GMT 08:15, the dollar was up 0.02% to 7.202 against the Chinese Yuan.

•  Immediate resistance is located at 7.223(38.2%fib), any close above will push the pair towards 7.247(61.8%fib)

• Support is seen at 7.194(23.6%fib) and break below could take the pair towards 7.175 (Lower BB).

Recommendation: Good to sell around 7.205 with stop loss of 7.240 and target price of 7.170