• USD/CNY traded on tight range on Monday as persistent U.S.-China trade tensions kept markets on edge.
• Trump's late Friday move to double steel and aluminum tariffs to 50% escalated the trade war, following accusations that China broke a deal on rolling back critical minerals tariffs.
• China's Commerce Ministry on Monday dismissed the U.S. tariff accusations as "groundless" and vowed to take strong, unspecified countermeasures to protect its national interests.
• Investors are closely watching for signals on whether Trump will follow through with the 50% tariff hike on Wednesday or reverse course, as he has often done in the past.
• At GMT 10:16, the dollar was down 0.02% to 7.197 against the Chinese Yuan.
• Immediate resistance is located at 7.212(50%fib), any close above will push the pair towards 7.242(61.8%fib)
• Support is seen at 7.2182(38.2%fib) and break below could take the pair towards 7.170 (Lower BB).
Recommendation: Good to sell around 7.200, with stop loss of 7.230 and target price of 7.170
