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• USD/ CNY eased slightly on Wednesday as the surging dollar paused but the pair remained near 16-month high as nervous markets awaited Donald Trump's inauguration as U.S. president next week.
• Trump has threatened sharply higher tariffs on Chinese goods, potentially hurting its exports and putting further depreciation pressure on the yuan.
• Investors are awaiting Q4 GDP, industrial production, retail sales, and the unemployment rate, which are set to be released later this week.
• At GMT 11:38,the dollar was trading flat at 7.331 against Chinese Yuan.
• Immediate resistance is located at 7.333 (23.6%fib), any close above will push the pair towards 7.341 (Higher BB).
• Support is seen at 7.316(38.2%fib) and break below could take the pair towards 7.301 (50%fib).
Recommendation: Be on side-lines
