FxWirePro: USD/CNY moves up on tariff escalations between U.S. and China

• USD/CNY rose on Tuesday as China's yuan slipped as traders remained wary about the economic risks of an escalating trade war between the world's two biggest economies..

•China accused Washington of abusing tariffs on Monday and warned countries against striking economic deals with the U.S. at its expense, escalating the trade war between the two largest economies.

•President Trump paused tariffs on most countries announced on April 2, except for China, which faces the highest levies.

•Washington has raised tariffs on Chinese imports to 145%, prompting China to impose 125% duties on U.S. goods, creating de facto trade embargoes. Last week, China signaled it would not raise its tariffs further

• As a result, global market volatility has risen, currencies are fluctuating in response to Trump's tariff announcements.

•  Immediate resistance is located at 7.309(50%fib), any close above will push the pair towards 7.326(38.2%fib)

• Support is seen at 7.290(61.8%fib),  and break below could take the pair towards 7.282(April 21st low )

Recommendation: Good to buy around 7.300, with stop loss of 7.260 and target price of 7.350