• USD/CNY dipped on Wednesday as Yuan firmed slightly as highly anticipated Sino-U.S. trade talks conveyed optimism but few specifics, keeping investors cautious.
• Top U.S. and Chinese officials said Tuesday they agreed on a framework to revive their trade truce and lift China’s export curbs on rare earths.
• Investors responded cautiously, as easing U.S.-China tensions were widely anticipated, with focus now shifting to details of a lasting trade deal.
• U.S. Commerce Secretary Howard Lutnick said the implementation plan should address restrictions on rare earths and magnets, but provided no concrete details.
• At GMT 09:58, the dollar was down 0.04% to 7.183 against the Chinese Yuan.
• Immediate resistance is located at 7.200(38.2%fib), any close above will push the pair towards 7.220(50%fib)
• Support is seen at 7.175(23.6%fib) and break below could take the pair towards 7.164 (Lower BB).
Recommendation: Good to sell around 7.190, with stop loss of 7.240 and target price of 7.170
