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• USD/ CNY strengthened on Tuesday as persistent market worries over higher tariffs on Chinese goods from Donald Trump's second presidency weighed on yuan.
•As part of his campaign to revitalize American manufacturing, Trump pledged to impose tariffs of 60% or higher on goods imported from China.
• China unveiled a 10 trillion yuan debt package on Friday to ease local government financing strains and stabilise flagging economic growth, as it faces fresh pressure from the re-election of Donald Trump as U.S. president.
• At GMT 05:28,the dollar was up 0.25% at 7.231 against Chinese Yuan.
•Technical signals show the pair could gain more ground as RSI is up at 71, and 9, 11,21 DMA’s are trending north.
• Immediate resistance is located at 7.190 (23.6%fib), any close above will push the pair towards 7.199 (Higher BB).
• Support is seen at 7.219(Daily low) and break below could take the pair towards 7.196 (38.2%fib).
Recommendation: Good to buy around 7.220 with stop loss of 7.150 and target price of 7.290
