• USD/CNY edged lower on Monday as the yuan strengthened on improving risk appetite after the United States and Iran paused military strikes, reducing demand for the safe-haven U.S. dollar..
• Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate at 6.7911 per dollar, 28 pips firmer than the previous fix on Friday.
• Investors are now turning their attention to the Communist Party's Politburo meeting, China's top policymaking body, which is expected to take place around the end of July for clues on further economic support measures.
• Policymakers are expected to outline China's economic policy agenda for the second half of the year, with the decisions likely to influence the yuan's outlook.
• Immediate resistance is located at 6.772(38.2%fib), any close above will push the pair towards 6.780(SMA 20)
• Support is seen at 6.755(23.6%fib) and break below could take the pair towards 6.751 (Lower BB).
Recommendation: Good to sell around 6.770, with stop loss of 6.830 and target price of 6.740
