• USD/ CNY recovered slightly on Tuesday but remained close to a three-week low as investors booked profit on shorts.
• Official data released on Tuesday revealed a slight acceleration in China industrial profit growth for July, despite earlier figures in August indicating a slowdown in exports.
• At GMT 19:52,the dollar recovered against Chinese Yuan. It was up 0.04% at 7.123
• Technical signals are bearish as RSI is at 36, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 7.1291 (Daily high), any close above will push the pai
r towards 7.1396 (50%fib).
• Support is seen at 7.1163(23.6%fib) and break below could take the pair towards 7.1100 (Psychological level).
Recommendation: Good to sell around 7.1300 with stop loss of 7.1600 and target price of 7.1000
