• USD/CNY firmed on Monday as escalating tensions in the Middle East boosted safe-haven demand for the U.S. dollar.
• Over the weekend, U.S. forces launched precision strikes against Iran’s primary uranium enrichment sites, targeting centrifuge halls and underground storage facilities in Natanz and Fordow.
• Investors have their eyes fixed on oil markets as escalation in the Middle East tensions threatens to disrupt supply routes and production levels.
•China has condemned the strikes on Iran but has offered no indication of direct support or involvement.
• Market participants closely watch the China’s central bank's daily guidance for any clues on changes to FX policy.
• Immediate resistance is located at 7.197(38.2%fib), any close above will push the pair towards 7.204(Higher BB)
• Support is seen at 7.178(38.2%fib) and break below could take the pair towards 7.166 (Lower BB).
Recommendation: Good to buy around 7.180, with stop loss of 7.100 and target price of 7.220
