• USD/CNY dipped on Wednesday as investor sentiment improved after President Trump eased market concerns by supporting the Fed chief and suggesting potential tariff reductions on Chinese goods.
•Both President Trump and U.S. Treasury Secretary Scott Bessent indicated that trade tensions with China could de-escalate, with a potential deal significantly reducing tariffs.
•Markets have been uneasy as President Trump’s repeated attacks on Fed Chair Powell over interest rates raise concerns about the central bank’s independence..
• At GMT 09:49, the dollar down 0.33% to 7.286 against the Chinese Yuan.
• Immediate resistance is located at 7.303(50%fib), any close above will push the pair towards 7.311(Daily high)
• Support is seen at 7.282(61.8%fib) and break below could take the pair towards 7.327(April 3rd low).
Recommendation: Good to buy around 7.280, with stop loss of 7.250 and target price of 7.330
