FxWirePro: USD/CNY neutral in the near-term, scope for downward resumption

• USD/ CNY was little changed  on Friday  as investors digested U.S. inflation  , but remained on track for its fourth straight weekly gain..

• The yuan moved within a tight range, trading at 7.041 by 05:48 GMT, just above Thursday’s 14-month peak of 7.040..

• The yuan is on track for its fourth consecutive week of gains, marking its longest streak since June, rising 0.5% against the dollar this month and 3.7% so far this year..

• Before the market opened, the People’s Bank of China (PBOC) fixed the midpoint rate at 7.0550 per dollar, the strongest level since September 30, 2024.

•  The central bank has been steadily firming its daily yuan reference rate, signaling a bias that permits gradual appreciation.

•  Immediate resistance is located at 7.046(Dec 16th high), any close above will push the pair towards 7.061(38.2%fib).

• Support is seen at 7.039(23.6%fib) and break below could take the pair towards 7.032 (Lower BB).

Recommendation: Good to sell around 7.045  with stop loss of 7.060 and target price of 7.020