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FxWirePro: USD/CNY hits a 3-week high amid Trade tension

• 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

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