FxWirePro: USD/ CNY sustains gains as uptrend remains strong

• USD/ CNY strengthened on Monday as Chinese Yuan weakened as support measures from China continued to disappointed investors.

• On Friday, China announced a 10 trillion yuan ($1.40 trillion) debt package aimed at addressing local debt problems, falling short of investors' expectations for a large-scale fiscal stimulus.

•On the data front, China's consumer prices rose at the slowest pace in four months in October while producer price deflation deepened, data showed on Saturday, even as Beijing doubled down on stimulus to support the sputtering economy.

• At GMT 05:22,the dollar   was up 0.12% at 7.186  against Chinese Yuan.

•Technical signals show the pair could gain more ground as RSI is up at 59, and 9, 11,21 DMA’s are trending north.

•  Immediate resistance is located at 7.190 (23.6%fib), any close above will push the pair towards 7.199 (Higher BB).

• Support is seen at 7.165(38.2%fib) and break below could take the pair towards 7.143 (50%fib).

Recommendation: Good to buy around 7.183 with stop loss of 7.150 and target price of 7.220