• USD/CNY strengthened on Friday as yuan weakened as comments from the China’s annual economic meeting failed to spark investor enthusiasm.
• According to a state media report from the Central Economic Work Conference held on December 11-12, China committed to increasing the budget deficit, issuing more debt, and easing monetary policy to support economic growth.
• Threats of tariffs from US President-elect Donald Trump and differences in US and Chinese monetary policy have caused the Chinese currency to decline for ten weeks in a row.
• At GMT 05.54,the dollar was up 0.14% at 7.278 against Chinese Yuan .
• Immediate resistance is located at 7.279(23.6%fib), any close above will push the pair towards 7.291(Higher BB)
• Support is seen at 7.258(Dec 12th low) and break below could take the pair towards 7.244(38.2%fib).
Recommendation: Good to buy around 7.270 with stop loss of 7.200 and target price of 7.350
