FxWirePro: USD/CNY hit 1-1/2 month low ,scope for further downside

• USD/CNY hit 1-1/2 month low  on Tuesday  as Chinese  Yuan was buoyed by growing optimism about easing U.S.-China trade tensions.

• The yuan's rise follows President Trump's Sunday statement that the U.S. is negotiating trade deals with multiple countries, including China, with a focus on securing a fair deal with Beijing.

• On Friday, Beijing stated it was  evaluating  Washington's offer to discuss Trump's tariffs, while cautioning the U.S. against  extortion and coercion  .

• The yuan has come under significant   pressure since Trump imposed broad tariffs on April 2, including a 145% duty on Chinese goods, which has strained Chinese exporters and impacted the economy.

• At GMT 05:45, the dollar was down 0.70% to 7.219 against the Chinese Yuan.

•  Immediate resistance is located at 7.243(50%fib), any close above will push the pair towards 7.267(61.8%fib)

• Support is seen at 7.215(38.2%fib) and break below could take the pair towards 7.183(23.6%fib).

Recommendation: Good to buy around 7.230, with stop loss of 7.280 and target price of 7.170