• USD/CNY dipped on Tuesday as the yuan strengthened amid escalating U.S.-China trade tensions.
•The United States doubled tariffs on Chinese goods to 20% on Tuesday, prompting Beijing to retaliate with additional 10%-15% tariffs on select U.S. imports starting March 10.
• China swiftly retaliated on Tuesday against new U.S. tariffs, imposing higher import levies on $21 billion worth of American agricultural and food products, escalating tensions between the world’s two largest economies.
• At GMT 10:30,the dollar was down 0.20% at 7.272 against Chinese Yuan .
• Immediate resistance is located at 7.289(50%fib), any close above will push the pair towards 7.308(38.2%fib)
• Support is seen at 7.273(61.8%fib) and break below could take the pair towards 7.257(Feb 27th low).
Recommendation: Good to buy around 7.270 with stop loss of 7.230 and target price of 7.350
