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• USD/ CNY hits fresh 16 -month low on Wednesday as China's yuan gained strength, fueled by investor optimism surrounding broad policy easing measures .
• The strength of the Chinese currency follows Beijing's announcement of its largest stimulus package since the pandemic, aimed at revitalizing the economy and combating deflation.
• At GMT 05:16,the dollar was down 0.21% at 7.016 against Chinese Yuan
• Immediate resistance is located at 7.030 (Daily high), any close above will push the pair towards 7.041 (38.2%fib).
• Support is seen at 7.016(23.6%fib) and break below could take the pair towards 7.000 (Psychological level).
Recommendation: Good to sell around 7.040 with stop loss of 7.100 and target price of 7.000
