FxWirePro: USDCNY consolidates around 7.240 ,room for further gains

• USD/CNY consolidated near a 3-1/2-month  high   on Thursday  as investors waited for more clues on U.S. President-elect Donald Trump's proposed policies that could affect the Chinese currency's outlook.

• The yuan has faced pressure since the U.S. presidential election, as investor concerns grow over the prospect of higher tariffs on Chinese goods and escalating trade tensions between the world’s two largest economies in the coming years.

• A poll of economists suggests the U.S. could impose nearly 40% tariffs on Chinese imports early next year, potentially reducing growth in the world’s second-largest economy by up to 1 percentage point.

• At GMT 07:25,the dollar was up 0.09% at 7.239 against Chinese Yuan .

 •  Immediate resistance is located at 7.248(23.6%fib), any close above will push the pair towards 7.266(Nov 14th high)

• Support is seen at 7.237(SMA 5) and break below could take the pair towards 7.216 (38.2%fib).

Recommendation: Good to buy around  7.235 with stop loss of 7.180  and target price of 7.280