• USD/CNY dipped on Wednesday as yuan firmed ahead of this week's meeting between U.S. President Donald Trump and his Chinese counterpart, Xi Jinping.
• Donald Trump is scheduled to arrive in Beijing on Wednesday ahead of high-level talks set to take place on Thursday and Friday.
• Donald Trump and Xi Jinping will hold their first face-to-face talks in more than six months as both sides seek to stabilize relations strained by trade tensions, the U.S.-Israeli war on Iran, and broader geopolitical disagreements.
• The Chinese yuan strengthened despite the U.S. dollar rebounding 0.4% overnight, as investors continued to position for potential improvements in U.S.-China relations ahead of high-level talks in Beijing.
•China's yuan traded around 6.79 per dollar, near its strongest level since February 2023
• Immediate resistance is located at 6.817(SMA 20), any close above will push the pair towards 6.837(38.2%fib)
• Support is seen at 6.785(Lower BB) and break below could take the pair towards 6.753(23.6%fib).
Recommendation: Good to sell around 6.795, with stop loss of 6.820 and target price of 6.750
