• USD/CNY crept higher on Tuesday as Yuan depreciated as market players took a cautious attitude ahead of the result of continuing US-China trade talks.
• Top officials are gathering in London for the second day to discuss export regulations, with an emphasis on key minerals such as rare earths.
•The US-China meeting, which began on Monday, comes after a rare phone discussion between Chinese President Xi Jinping and his US counterpart Donald Trump last week, when tensions heated up again, with both sides accusing the other of breaking a pact struck last month.
• The outcome might have an influence on the worldwide supply chains for technology and green energy. Both sides want to prevent economic disruptions, but deep trade tensions persist.
• At GMT 10:14, the dollar was up 0.06% to 7.183 against the Chinese Yuan.
• Immediate resistance is located at 7.193(Daily high), any close above will push the pair towards 7.205(38.2%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
