• USD/ CNY rose sharply on Wednesday as dollar rallied driven by growing bets that Donald Trump would win the U.S. presidential election.
• Trump took an early lead over Democrat Kamala Harris in the hotly contested election as solid Republican-leaning states reported first.
• In the lead-up to the election, Donald Trump vowed to impose a 10% tariff on imports from all countries, alongside a more aggressive 60% duty on Chinese imports.
•Trump victory bets particularly affected currencies like the Chinese yuan, as investors anticipated the potential economic impact of such trade policies.
• At GMT 05:55,the dollar was up 0.75% at 7.157 against Chinese Yuan
• Immediate resistance is located at 7.158 (38.2%fib), any close above will push the pair towards 7.178 (Aug 16th high).
• Support is seen at 7.137(50%fib) and break below could take the pair towards 7.115 (61.8%fib).
Recommendation: Good to buy around 7.155 with stop loss of 7.140 and target price of 7.190
