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FxWirePro: USD/CNY loses momentum amid trade tensions, bullish outlook remains

• 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

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