FxWirePro: USD/CNY edges lower, set to stay on back foot

• USD/CNY edges lower on Tuesday as the yuan edged higher, with markets awaiting U.S.-Iran talks while the PBOC guided the currency to maintain stability.

• Iran was weighing participation in the peace talks in Pakistan, a senior Iranian official told Reuters on Monday, following moves by Islamabad to end a U.S. blockade of Iran's ports.

•Prior to market opening, the People's Bank of China (PBOC) set the midpoint   at 6.8594 per dollar, the strongest level since April 15.

•The central bank has mostly set the midpoint weaker than expected since November, seen as an effort to curb excessive strength and maintain currency stability.

•The yuan has been one of the best-performing emerging-market currencies since the outbreak of the Iran war in late February, gaining more than 0.5% on the greenback.

•  Immediate resistance is located at 6.854(SMA20), any close above will push the pair towards 6.901(38.2%fib)

• Support is seen at 6.810(23.6%fib),  and break below could take the pair towards 6.781(Lower BB)

Recommendation: Good to sell around 6.815, with stop loss of 6.830 and target price of 6.800