FxWirePro: USDCNY uptrend resumes rise as yuan falls on concerns over tariff threats

• USD/CNY strengthened   on Wednesday as China's yuan weakened amid a new trade dispute between the U.S. and China.

• Beijing imposed tariffs on U.S. imports Tuesday in response to new U.S. duties on Chinese goods, reigniting the trade war as Trump aimed to punish China for not stopping illicit drug flows.

• Chinese markets returned from a week-long Lunar New Year break, with China responding relatively restrained to Trump's 10% tariff hike, imposing levies on just $14 billion of U.S. exports

• At GMT 10:12,the dollar was up 0.29% at 7.271against Chinese Yuan .

 •  Immediate resistance is located at 7.285(SMA 50), any close above will push the pair towards 7.295(38.2%fib)

• Support is seen at 7.267(50%fib) and break below could take the pair towards 7.238 (61.8%fib).

Recommendation: Good to buy around  7.265 with stop loss of 7.240  and target price of 7.290