FxWirePro: USD/CNY edges higher as market sentiment turns cautious

• USD/CNY edged higher on Tuesday as fresh U.S. military strikes weakened hopes for a potential peace deal between Washington and Tehran .

• U.S. forces carried out strikes in southern Iran on Monday targeting missile launch sites and boats allegedly attempting to lay mines, describing the operations as defensive measures aimed at protecting American troops.

• Iran’s top negotiator and foreign minister were in Doha for talks with Qatar’s prime minister on a possible U.S. peace deal, though both Washington and Tehran downplayed chances of a near-term breakthrough.

• Before the market opened, the People's Bank of China set the midpoint rate at 6.8288 per dollar, its strongest since February 15, 2023.

• The central bank has been setting softer-than-expected midpoint fixings, a move that market participants have widely interpreted as an attempt to keep the market stable.

•  Immediate resistance is located at 6.804(SMA 20), any close above will push the pair towards 6.811(38.2%fib)

• Support is seen at 6.781(23.6%fib) and break below could take the pair towards 6.769 (Lower BB).

Recommendation: Good to sell around 6.820, with stop loss of 6.850 and target price of 6.780