FxWirePro: USD/CNY hits one week high as dollar advances as Middle east worries rise

• USD/CNY strengthened to hit one week high on Thursday as investor worries over a further escalation in the Middle East conflict boosted greenback.

• Iran and Israel exchanged more airstrikes on Thursday, marking the seventh day of conflict, as uncertainty grew over possible U.S. involvement with President Trump offering no clear stance.

• Rapidly rising geopolitical tensions have led to the dollar swiftly reclaiming its safe-haven status, making inroads against the yuan, yen, euro and the Swiss franc.

• Separately, The U.S. Federal Reserve held interest rates steady on Wednesday but signaled two possible cuts this year, with Chair Powell stressing they will depend on incoming data and noting inflation risks from Trump’s proposed import tariffs.

 • At GMT 06:53, the dollar was up 0.03% to 7.190 against the Chinese Yuan.

•  Immediate resistance is located at 7.201(38.2%fib), any close above will push the pair towards 7.206(Higher BB)

• Support is seen at 7.169(23.6%fib) and break below could take the pair towards 7.165 (Lower BB).

Recommendation: Good to buy around 7.190, with stop loss of 7.160 and target price of 7.220