FxWirePro: USD/CNY strengthens as China's yuan dips on tariff fears

• USD/ CNY  strengthened  on Friday as China's yuan slipped on back of U.S. President Donald Trump's latest tariff comments.

• Trump announced that 25% tariffs on Mexican and Canadian goods, along with a 10% duty on Chinese imports, will take effect Tuesday due to ongoing drug flows into the U.S.

• The new China tariffs, along with the 10% tariff from February 4, coincide with the start of China's annual parliamentary meetings on Wednesday, where Beijing is expected to outline its economic priorities for 2025.

• The announcement gives Beijing less than a week to respond, as Trump's administration toughens its stance, despite backing down from a 60% tariff threat earlier.

• At GMT 06:23,the dollar   was up  0.03% at 7.286  against Chinese Yuan

•  Immediate resistance is located at 7.289 (38.2%fib), any close above will push the pair towards 7.309(Higher BB).

• Support is seen at 7.273(50%fib) and break below could take the pair towards 7.257(61.8%fib).

Recommendation: Good to buy  around 7.280  with stop loss of 7.230 and target price of 7.330