• USD/CNY hit three-week high on Wednesday as investors remained cautious ahead of further developments in tense global trade relations.
• U.S. President Donald Trump increased tariffs on steel and aluminum imports to 25% on Monday and stated he would announce reciprocal tariffs within the next two days..
• Market participants are concerned that China may face additional tariff hikes, following a 10% duty on goods imported from China, due to its large trade surplus with the United States.
• At GMT 09:57,the dollar was up 0.02% at 7.308 against Chinese Yuan .
• Immediate resistance is located at 7.316(38.2%fib), any close above will push the pair towards 7.324(Jan 20th high)
• Support is seen at 7.302(38.2%fib) and break below could take the pair towards 7.288 (50%fib).
Recommendation: Good to buy around 7.300 with stop loss of 7.240and target price of 7.330
