FxWirePro: USD/CNY strengthens as yuan extends decline

• USD/CNY strengthened on Wednesday  as China’s Yuan continued weaken  pressured by concerns over the economic impact of U.S. tariffs and the threat of more duties on Chinese goods.

• Markets remain tense as they await next week’s announcement from U.S. President Donald Trump, who is expected to impose new tariffs on the auto and semiconductor industries.

• Tariffs and the threat of new duties have led to unexpected shifts in currency markets, as concerns over their impact on U.S. growth challenge the assumption that they should be inflationary and strengthen the dollar.

• At GMT 07:25, the dollar gained 0.10% to 7.262 against the Chinese Yuan.

•  Immediate resistance is located at 7.276(38.2%fib), any close above will push the pair towards 7.284(Higher BB)

• Support is seen at 7.257(50%fib) and break below could take the pair towards 7.240(61.8%fib).

Recommendation: Good to buy around 7.260, with stop loss of 7.230 and target price of 7.300