FxWirePro: USD/CNY hits 3-year low as dollar weakens on hopes for U.S.-Iran talks

• USD/CNY dipped to hit three year low on Tuesday as   dollar fell   on hopes that U.S.–Iran talks could lead to a breakthrough.

• The U.S. said it was continuing to engage with Tehran on a possible deal to end the conflict even as it began a blockade of Iran's ports on Monday.

•U.S. President Donald Trump said the military began a blockade of ships leaving Iranian ports on Monday, adding that Tehran remains open to a deal despite tense Islamabad talks

• The series of comments brought noticeable relief to financial markets, as they signaled a potential shift away from escalation and revived expectations that a diplomatic resolution could still be achieved.

• Before the market opened on Tuesday, the People's Bank of China set the yuan's midpoint rate at 6.8593 per dollar, its strongest since March 24, 2023.

•  Immediate resistance is located at 6.838(Daily high), any close above will push the pair towards 6.869(38.2%fib)

• Support is seen at 6.813(23.6%fib) and break below could take the pair towards 6.799(Lower BB).

Recommendation: Good to sell  around 6.820 with stop loss of 6.900 and target price of 6.800