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USD/CNY--consolidation. USD/CNY may slip Wednesday as the U.S. dollar index fell again--a sign most investors aren't convinced the U.S. Federal Reserve will reduce bond buying after its policy decision meeting Wednesday. The PBOC central parity rate for USD/CNY is hence likely to drift lower toward the record of 6.1100 marked last week. The spot USD/CNY is near the bottom of the daily Bollinger downtrend channel--an indication the dollar is nearing an overextended skew in terms of market positioning and, therefore, gains for the yuan may not be as forthcoming. The U.S. Federal Reserve's policy decision due later Wednesday will likely be the next trigger for general direction of the U.S. dollar but, even if the dollar spikes on a surprise decision to reduce bond buying, the yuan may not be affected as much as other Asia currencies owing to the view China authorities are speeding up financial reforms that will make the yuan more convertible in the future. Dow Jones technical analysis suggests immediate support is at 6.0703 (record low), then at 6.0700 (psychological support), then at 6.0691 (base of daily Bollinger downtrend channel), before 6.0600 (psychological support). Immediate resistance is at 6.0800 (psychological resistance), then at 6.0802 (top of daily Bollinger downtrend channel).