• USD/ CNY strengthened on Monday as China's yuan weakened as China's broad economic stimulus promises made over the weekend failed to inspire investors across the globe.
• The Chinese government announced plans on Saturday to increase public debt and stimulate economic growth by strengthening the real estate industry.
• The yuan was further weighed down by the softer-than-expected consumer inflation data, which marked the lowest level since June.
• At GMT 14:53,the dollar was up 0.35 % at 7.083 against Chinese Yuan.
•Technical signals are bearish as RSI is trending lower, moving averages are trending down
• Immediate resistance is located at 7.085 (38.2%fib), any close above will push the pair towards 7.102 (Higher BB).
• Support is seen at 7.065(50%fib) and break below could take the pair towards 7.046 (61.8%fib).
Recommendation: Good to buy around 7.070 with stop loss of 7.020 and target price of 7.105
