FxWirePro: USD/CNY hits 6-month low, scope for further downside

• USD/CNY hit  6-month low on Tuesday as the yuan was boosted by   U.S.-China trade truce and supportive PBOC guidance.

• The U.S.-China deal, reached after weekend talks in Geneva, exceeded market expectations, with both sides agreeing to significantly unwind most of the tariffs imposed since early April.

• Before market opening, the People's Bank of China (PBOC) set its official midpoint fixing above the key 7.2 per dollar level for the first time in over a month.

• The central bank's midpoint fixing is closely watched by markets as it signals the government's stance on foreign exchange policy.

• At GMT 05:14, the dollar was down 0.17% to 7.189 against the Chinese Yuan.

•  Immediate resistance is located at 7.234(38.2%fib), any close above will push the pair towards 7.253 (50%fib)

• Support is seen at 7.210(23.6%fib) and break below could take the pair towards 7.198 (Lower BB).

Recommendation: Good to sell around 7.190, with stop loss of 7.240 and target price of 7.120