• USD/ CNY traded in tight range on Thursday after as PBOC set the currency fixing weaker after the greenback's rebound from a four-year low.
• The yuan has gained 0.7% against the dollar this month after rising 4.5% in 2025, supported by a weaker greenback and stronger year-end exporter demand..
•Following the dollar's strength, the People's Bank of China set the midpoint rate at 6.9771 per dollar prior to the market open.
• The central bank has steadily raised its daily yuan fixing, though at weaker-than-market levels, signaling tolerance for some appreciation while discouraging one-way bullish bets.
• Immediate resistance is located at 6.967 (SMA 20), any close above will push the pair towards 7.000(Psychological level).
• Support is seen at 6.944 (23.6%fib) and break below could take the pair towards 6.935 (Lower BB).
Recommendation: Good to sell around 6.940 with stop loss of 6.970 and target price of 6.930
