FxWirePro: USD/CNY hits 19-month high amid trade war escalation

• USD/CNY surged to a nineteen month high   on Wednesday as China's yuan dipped as investors fretted about an intensifying Sino-U.S. trade war.

• Trump's  reciprocal  tariffs, including a 104% duty on Chinese goods, took effect on Wednesday, despite plans for negotiations with some countries.

•Late Tuesday, Trump accused China of manipulating its currency to shield against tariffs, but expressed belief that China would eventually strike a deal.

• Shifting headlines on tariffs and the threat of a prolonged trade war between the world’s two largest economies have sparked significant volatility across financial markets.

• At GMT 08:27, the dollar up 0.13% to 7.347 against the Chinese Yuan.

•  Immediate resistance is located at 7.351(23.6%fib), any close above will push the pair towards 7.360(Higher BB)

• Support is seen at 7.334(50%fib) and break below could take the pair towards 7.327(April 8th low).

Recommendation: Good to buy around 7.340, with stop loss of 7.300 and target price of 7.390