FxWirePro: USD/CNY set for bigger drop, but close below key fibo needed

• USD/CNY dipped on Monday  as the Chinese yuan  firmed as  investors  cheered progress in trade dialogue between U.S.-China.

• U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer highlighted  substantial progress" in trade talks, with further details expected to be revealed on Monday.

• The talks represented the first opportunity for both sides to ease tensions after a lengthy standoff over tariffs.

• Financial markets are closely watching for signs of a resolution to the ongoing U.S.-China trade war, which has already caused supply chain disruptions, layoffs, and rising wholesale prices.

• At GMT 06:23, the dollar was down 0.20% to 7.221 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 7.220, with stop loss of 7.270 and target price of 7.180