• USD/ CNY strengthened on Monday as Chinese Yuan weakened as markets mulled U.S. President-elect Donald Trump's fiscal and trade policies could be a drag on China’s economy.
• Trump has argued that his trade policies, which include high tariffs on goods from rivals like China, would boost American manufacturing and generate revenue to offset concerns about the growing deficit and rising inflation.
• At GMT 14:05,the dollar was up 0.13% at 7.239 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 7.251(23.6%fib), any close above will push the pair towards 7.277(Jul24th high).
• Support is seen at 7.229(SMA 5) and break below could take the pair towards 7.206(38.2%fib).
Recommendation: Good to buy around 7.235 with stop loss of 7.180 and target price of 7.260
