FxWirePro: USD/CNY hold steady as U.S.–China extend trade truce

• USD/CNY held steady on Tuesday   after Washington and Beijing extended a tariff truce for another 90 days, a move largely in line with investors' expectations.

• Trade ties between the world’s two largest economies have been shaping the yuan, with investors largely expecting a truce extension after last month’s meeting in Stockholm and signs of easing tensions.

• The fragile trade truce between Beijing and Washington has allowed Chinese manufacturers to ramp up exports, defying expectations after earlier tariff escalations threatened a freeze.
 

• Meanwhile, markets are awaiting China’s credit growth data this week for a clearer view of the broader economy’s health.

• At GMT 05:28, the dollar was down  0.02% to 7.186 against the Chinese Yuan.

•  Immediate resistance is located at 7.203(38.2%fib), any close above will push the pair towards 7.213(Aug 1st high)

• Support is seen at 7.179(SMA 20) and break below could take the pair towards 7.155 (Lower BB).

Recommendation: Good to buy  around 7.185, with stop loss of 7.170 and target price of 7.200