• USD/ CNY strengthened on Tuesday as combination of weak domestic economic data and stronger dollar weighed on Yuan.
• China's export growth slowed sharply in September while imports also unexpectedly decelerated, undershooting forecasts by big margins.
• China is due to release its third-quarter gross domestic product and other activity indicators on Friday.
• Dollar firmed on market expectations the U.S. Federal Reserve will resist repeating September's outsized cut to rates in the near term.
•Technical signals are bullish as RSI is up at 65, moving averages are trending north
• Immediate resistance is located at 7.123(Sep 12th high), any close above will push the pair towards 7.136 (23.6%fib).
• Support is seen at 7.110(38.2%fib) and break below could take the pair towards 7.092 (50%fib).
Recommendation: Good to buy around 7.110 with stop loss of 7.090 and target price of 7.140
