FxWirePro: USD/CNY hovers near 3-1/2-year low ,outlook strongly bearish

• USD/CNY hovered near   3-1/2-year low on Tuesday after the central bank set a firmer daily fixing for a 10th consecutive session, the longest such streak since late 2023.

•Prior to the market opening, the People's Bank of China set the midpoint rate   at 6.7459 per dollar, its strongest since February 3, 2023, but 470 pips weaker than a Reuters' estimate   of 6.6989.

•Scott Bessent, the U.S. Treasury secretary, offered positive remarks on trade ties between Washington and Beijing ahead of Chinese President Xi Jinping's scheduled U.S. state visit from September 23 to 25 at President Donald Trump's invitation..

• The key focus of their September 24 meeting will be whether the two leaders signal an extension of the trade truce reached last year, which helped avert a major shock to the global economy..

• China's yuan has gained about 4.4% against the dollar this year, making it one of Asia's best-performing currencies, supported by resilient exports..

•  Immediate resistance is located at 6.710(SMA 20), any close above will push the pair towards 6.721(38.2%fib)

• Support is seen at 6.6917(23.6%fib) and break below could take the pair towards 6.686 (Lower BB).

Recommendation: Good to sell around 6.700, with stop loss of 6.710 and target price of 6.680