FxWirePro: USD/CNY hovers near two-week high, outlook bearish

• USD/CNY  hovered near two week high on Monday    as  greenback strength   after fresh signs of Middle East tensions drove investors into risk-off mode.

• A drone strike sparked a fire at a UAE nuclear plant, while Saudi Arabia intercepted three drones, as Trump warned Iran to act quickly amid stalled U.S.-Iran peace efforts.

• Market sentiment  was dented   further after China’s April data showed industrial output and retail sales sharply missed forecasts, highlighting slowing growth amid higher Iran war-related energy costs and weak domestic demand..

• Before the market opened, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.8435 per dollar.

• Separately, Sino-U.S. ties remained in focus after China said both countries agreed to expand agricultural trade through tariff cuts and address non-tariff barriers following last week’s Beijing summit.

•  Immediate resistance is located at 6.815(SMA 20), any close above will push the pair towards 6.826(38.2%fib)

• Support is seen at 6.783(23.6%fib) and break below could take the pair towards 6.775(Lower BB).

Recommendation: Good to sell around 6.820, with stop loss of 6.850 and target price of 6.780