FxWirePro: USD/CNY hovers near one week low on firm fixing, Iran peace hopes

• USD/CNY hovered near a one-week low as the PBOC set firmer guidance while hopes of a deal to end the Iran war weighed on the safe-haven U.S. currency.

•The greenback paused its rally on hopes that Washington is nearing a deal with Tehran to end the war. The dollar's six-currency index was flat at 99.17.

•On Wednesday, U.S. President Donald Trump said negotiations with Iran were in the final stages but ⁠warned of further attacks unless Iran agreed to a deal, adding that ​Washington could wait a few days to "get the right answers."

• Prior to the market opening, the People's Bank of China set the midpoint rate CNY=PBOC at 6.8349, its strongest since February 15, 2023, and 394 pips weaker than a Reuters estimate.

•  Immediate resistance is located at 6.812(SMA 20), any close above will push the pair towards 6.820(38.2%fib)

• Support is seen at 6.782(23.6%fib) and break below could take the pair towards 6.772(Lower BB).

Recommendation: Good to sell around 6.800, with stop loss of 6.820  and target price of 6.750