FxWirePro: USD/CNY rises as Yuan weakens amid trade war concerns

• USD/CNY rose on Monday as China's yuan weakened amid worries over an escalating global trade war and fresh signs of economic wobbles.

•The Trump administration doubled tariffs on all Chinese imports to 20% this week, prompting Beijing to retaliate with 10-15% tariffs on select U.S. goods.

•On the data front, China's consumer price index in February missed expectations and fell at the sharpest pace in 13 months.

•The consumer price index (CPI) dropped 0.7% year-over-year in February, reversing January’s 0.5% gain, according to data from the National Bureau of Statistics (NBS) released on Sunday.

• The yuan weakened despite the dollar index   extending its decline for a sixth session, as concerns grew that Trump’s trade war could harm the U.S. economy.

•  Immediate resistance is located at 7.275(38.2%fib), any close above will push the pair towards 7.294(March 3rd high)

• Support is seen at 7.240(Daily low) and break below could take the pair towards 7.225(50%fib).

Recommendation: Good to buy  around  7.240 with stop loss of 7.200 and target price of 7.300