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FxWirePro: USD/ CNY set for bigger drop, but close below key fibo needed

• USD/CNY edged lower on Friday as China’s yuan  firmed supported by steady central bank backing amid rising Middle East tensions..

•  China’s central bank said it will fully use its financial tools to ensure stability across stock, bond, and foreign exchange markets.

•  The Iran war has heightened inflation concerns and unsettled global markets, with major central banks signaling readiness to tighten policy if price pressures rise..

• Prior to the market's opening, the PBOC set the midpoint   at 6.8898 per dollar, the strongest fix since April 25, 2023.

•  Immediate resistance is located at 6.902 (Daily high), any close above will push the pair towards 6.917(Higher BB).

• Support is seen at 6.886(38.2%fib) and break below could take the pair towards 6.850(Lower BB).

Recommendation: Good to sell around  6.895 with stop loss of 6.910 and target price of 6.850

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