FxWirePro: USD/CNY extends gains, faces 23.6% fib resistance

• USD/CNY hit new three month high on Thursday as dollar continued its momentum for fifth straight day.

• Trump's proposed tariffs and other initiatives, such as tax cuts, are considered as inflationary and likely to keep US interest rates relatively high, boosting the US currency.

•   The risks of potential tariff hikes on Chinese and Asian exports to the United States have surfaced as a major concern for currency markets.

• Bearish bets on the Chinese yuan were at their highest since late June, with experts expecting commerce between the US and China to be affected by broad US tariffs.

• At GMT 09:03,the dollar was up 0.26% at 7.242 against Chinese Yuan .

 •  Immediate resistance is located at 7.246(23.6%fib), any close above will push the pair towards 7.259 (Higher BB)

• Support is seen at 7.223(Daily low) and break below could take the pair towards 7.2108(38.2%fib).

Recommendation: Good to buy around  7.240 with stop loss of 7.200  and target price of 7.300