FxWirePro: USD/CNY hovers near 3 -1/2 year low , outlook bearish

• USD/CNY hovered near 3 -1/2 year low  on  Tuesday  as the central bank continued to slow the pace of appreciation after two months of gains.

• The central bank has been setting its daily guidance increasingly weaker than market expectations, signaling efforts to limit further gains after a 4% rise this year.

•Before the market opened, the People’s Bank of China set the yuan midpoint at 6.7809 per dollar, its strongest level in nearly two weeks but about 640 pips weaker.

• U.S. Treasury Secretary Scott Bessent said he would urge G20 members to review trade terms with China to reduce global imbalances and push Beijing to shift its economy from exports toward domestic consumption.

•  Immediate resistance is located at 6.745(SMA20), any close above will push the pair towards 6.756(38.2%fib)

• Support is seen at 6.769(Daily low) and break below could take the pair towards 6.758 (Lower BB).

Recommendation: Good to sell around 6.720, with stop loss of 6.760 and target price of 6.700