• USD/ CNY steadied on Friday amid a rebound in the U.S. dollar and rising concerns about a trade war if Donald Trump wins the upcoming election.
• The dollar is bolstered by expectations that Donald Trump might secure a second term as U.S. president. His tax and tariff policies are viewed as inflationary, which could lead to sustained high U.S. interest rates and negatively impact trading partner currencies.
• At GMT 10:22,the dollar was up 0.06% at 7.123 against Chinese Yuan.
•Technical signals show the pair could gain more ground as RSI is up at 59, and 9, 11,21 DMA’s are trending north.
• Immediate resistance is located at 7.134 (23.6%fib), any close above will push the pair towards 7.146 (Aug 23rd high).
• Support is seen at 7.108(38.2%fib) and break below could take the pair towards 7.086 (50%fib).
Recommendation: Good to buy around 7.120 with stop loss of 7.090 and target price of 7.140
