FxWirePro: USD/CNY dips as weaker dollar gives bears some traction

• USD/CNY slipped lower on Tuesday as the U.S. dollar softened in the lead-up to the Federal Reserve’s policy meeting.

• Investors are widely expecting a 25-basis-point rate cut, though the Fed’s forward guidance will be key in shaping market direction.

• The Chinese yuan has been gradually firming in recent weeks, supported by the central bank’s stronger daily midpoint fix that signals official intent to stabilize the currency.

• Investor sentiment was further lifted by signs of easing Sino-U.S. trade tensions after the two sides reached a framework agreement to address the ownership dispute over short-video app TikTok.

• Market focus is turning toward the Federal Reserve’s September 16–17 policy meeting, where a rate cut is widely anticipated and largely priced into markets.

• At GMT 10:42, the dollar was down  0.04% to 7.115 against the Chinese Yuan.

•  Immediate resistance is located at 7.137(SMA 20), any close above will push the pair towards 7.154(38.2%fib).

• Support is seen at 7.112(23.6%fib) and break below could take the pair towards 7.102 (Lower BB).

Recommendation: Good to sell around 7.115, with stop loss of 7.140 and target price of 7.100