FxWirePro: USD/CNY hits one year low ,scope for further downside

• USD/CNY slumped to to hit one year low on Tuesday as China's yuan was buoyed by stronger central bank guidance and signs of a thaw in U.S.-China trade tensions.

• Top Chinese and U.S. economic officials finalized the framework of a trade deal on Sunday, paving the way for Presidents Donald Trump and Xi Jinping to make a decision later this week.

• On the first leg of his five-day Asia tour in Malaysia, President Trump said he believed a trade deal with China was within reach and revealed a series of new trade and critical mineral agreements with four Southeast Asian nations.

• The proposed trade deal would suspend planned U.S. tariff hikes and Chinese restrictions on rare earth exports, helping to ease investor concerns over escalating trade tensions.

• Prior to the market opening, the People's Bank of China set the midpoint rate  at 7.0856 per dollar, its strongest since October 15, 2024.

•  Immediate resistance is located at 7.104(38.2%fib), any close above will push the pair towards 7.109(Daily  high).

• Support is seen at 7.078(Lower BB) and break below could take the pair towards 7.086(Nov 4th 2024 low).

Recommendation: Good to sell around 7.100 with stop loss of 7.120  and target price of 7.085