FxWirePro: USD/CNY hits three week low, key support level in focus

• USD/CNY fell to its lowest level in three weeks on Wednesday as  Yuan gained traction amid signs of easing trade friction and continued firm guidance from China’s central bank.

• Markets turned upbeat on the prospect of a U.S.–China trade breakthrough after Scott Bessent confirmed a planned meeting in Stockholm to negotiate an extension of the existing tariff truce.

•The 90-day tariff truce agreed between Washington and Beijing during trade talks in Switzerland is set to expire on August 12.

• The yuan’s gains were also driven by the central bank’s stronger-than-expected fix, which lifted the midpoint to its highest level in eight months.

•Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate   at 7.1414 per dollar, its strongest since November 6.

•  Immediate resistance is located at 7.170(SMA 20), any close above will push the pair towards 7.179(38.2%fib)

• Support is seen at 7.156 (23.6%fib) and break below could take the pair towards 7.152 (Lower BB).

Recommendation: Good to sell around 7.160 with stop loss of 7.190 and target price of 7.140