• USD/CNY eased slightly on Tuesday as investors remained focused on upcoming U.S.-China trade negotiations.
• Top U.S. and Chinese economic officials held over five hours of talks in Stockholm on Monday, aiming to resolve longstanding trade disputes.
•Facing tariffs of over 100%, China has been given a deadline of August 12 to negotiate a deal with the White House and avert the reimposition of import curbs from the earlier tit-for-tat exchange.
• Separately, market focus is expected to turn to the upcoming Politburo meeting later this week, which could set the tone for China’s economic policy through year-end.
•The currency market continues to be driven largely by President Trump’s trade agenda and progress on tariff agreements with global partners.
• Immediate resistance is located at 7.189(38.2%fib), any close above will push the pair towards 7.192(38.2%fib)
• Support is seen at 7.171 (SMA 20) and break below could take the pair towards 7.148 (23.6%fib).
Recommendation: Good to buy around 7.170 with stop loss of 7.145 and target price of 7.200
