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FxWirePro: USD/CNY loses momentum but bullish setup remains

• USD/CNY edged lower on Thursday  as investors were cautiously awaiting Trump's reciprocal tariffs deadline on April 2 to assess the shifting risks for the Chinese currency.

•Trump announced 25% tariffs on auto imports late Wednesday, a move analysts say will primarily impact European, Japanese, and South Korean companies.

• Trump stated that planned reciprocal tariffs on all countries would be  lenient.  Regarding China, he suggested possible tariff reductions to facilitate a deal for selling TikTok.

• China's business climate stayed weak as industrial profits fell in early 2025, pressured by deflation and rising U.S. trade tensions.

• At GMT 08:42, the dollar gained 0.05% to 7.263 against the Chinese Yuan.

•  Immediate resistance is located at 7.268(March 25th high), any close above will push the pair towards 7.286(23.6%fib)

• Support is seen at 7.259(March 25th low) and break below could take the pair towards 7.246(38.2%fib).

Recommendation: Good to buy around 7.260, with stop loss of 7.230 and target price of 7.300

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